Private equity (hereinafter “PE”) is important for
growing and strengthening Ukrainian businesses in all industry
sectors. However, the PE market is still in the recovery mode is
the recovery mode after the crisis of 2008 and 2014 and includes up
to 10 major players that are private equity funds. These include,
among others Dragon Capital, Horizon Capital, East Capital,
AVentures, NHC Capital and Sigma Bleyzer.
According to common worldwide practice, PE funds make
investments in private companies, whose shares are not publicly
traded on a stock exchange. Generally, the strategy used with PE
funds is to invest in share capital by acquiring a minority stake
(20-40 percent), where the company's founders and their
management are dealing with day to day affairs at their discretion,
while the fund is involved into strategic decisions. As a rule,
investees are operating fast-growing companies that process profit
potential (usually rated top 10 in the market) but