LENNA KOSZARNY CEO OF HORIZON CAPITAL

Horizon Capital is a leading private equity firm in Ukraine that manages four funds with assets of over $850 million. Founding Partner and CEO Lenna Koszarny describes the pivotal changes afoot in Ukraine.

What has the media overlooked that investors should notice?

Recent changes in Ukraine have been driven by a civic society that is holding its leadership accountable. Nowhere in the world have there been free and fair elections resulting in a president winning over 73% of the vote and receiving such a decisive mandate from its citizens.

What makes Ukraine’s investment opportunity unique?

Ukraine offers a ground-floor opportunity that is truly unparalleled. In 2008, Ukraine had a nominal GDP of about $180 billion, which shrunk to $90 billion in 2015. The nominal GDP is about $135 billion today, so the country isn’t yet at its 2008 level. This is a large country in Europe and has lots of room to grow.

Which industries have the greatest potential for growth?

Of particular interest are opportunities in the exports sector. A case in point is the spectacular track record of IT outsourcing, light manufacturing, and food and agriculture. Among the domestic champions, we target industries undergoing fundamental transformation, such as e-commerce, which has grown six times over the past seven years. With Internet penetration and online-shopping incidence still much lower compared to regional peers, growth at 30% is expected to sustain.

How does Horizon Capital impact Ukrainian business?

During the last 26 years, the four funds that we manage have invested over $700 million in 150 companies, employing 52,000 people. These are companies that move the economy forward in the sectors where they operate. We are very selective in choosing our business partners, ensuring we share high principles and standards.