Ukraine Investment Fund
The Norwegian government has given Norfund a mandate to invest in Ukraine through a separate Ukraine Fund, supporting the country’s reconstruction and building a resilient economy.
Russia’s invasion has brought massive destruction across Ukraine: critical infrastructure, energy systems, homes, and industry have been damaged or destroyed. The nation faces the urgent task of rebuilding. Norfund has been given a special mandate by the Norwegian government to invest through a dedicated Ukraine Fund under the Nansen Programme.
The Ukraine Investment Fund exists to channel capital into business and infrastructure projects that play a central role in Ukraine’s reconstruction and long-term growth, projects that would likely not receive financing under normal market conditions due to heightened risk.
NOK 500 million has already been committed to the mandate, with scope for further allocations in future years.
Aim
The purpose of the Ukraine mandate is to contribute to the development of sustainable business activities and job creation in Ukraine. The fund aims to support investments that would not otherwise be undertaken due to the high risk in Ukraine. The Ukraine Fund is also intended to mobilize private capital by encouraging private investors to invest alongside the fund or be inspired by its activities.
What we offer
Norfund is a commercial investor, and financial returns is a precondition for our investment. Companies only survive if they are profitable over time, so profitability is essential for the creation of sustainable jobs and lasting development effects. Delivering positive returns is also important for Norfund to be catalytic, mobilizing private investors to invest with us – or inspired by us. We aim to exit our investments when we are no longer needed, enabling us to recycle the capital into new investment opportunities.
Investment approach
- Instrument: Norfund provides financing through both debt and equity, and we are flexible in our approach to ensure we find the right instrument for each transaction.
- Minority Positioning: Norfund will always take minority stakes with a maximum of 35% ownership.
- Ticket size: Typical investment size ranges from USD 5-25 million.
- Maturity: We target companies in the growth phase or with plans of expansion.
- Secondary capital: Norfund prioritizes growth capital and does not usually do pure secondary or buy out transactions
Value proposition
- Patient capital: Norfund is a long term investor and we support our portfolio companies to succeed also after we exit.
- Sector expertise: With 25 years of investment experience we have deep knowledge in our preferred investment areas.
- Agile and Nimble: Norfund is a lean organization, with unbureaucratic decision processes and are able to cooperate in a agile way.
- Serious long-term Commitment: Norfund is a reputable and professional investor and we are backing the recovery of Ukraine from a long term perspective
Priority sectors
The Ukraine Investment Fund builds on Norfund’s core investment areas, where we can leverage our knowledge and expertise (see below).
