The International Finance Corporation, a member of the World Bank Group, is to invest up to $20 million in a direct investment fund, Emerging Europe Growth Fund III, L.P. (EEGF III), registered in Delaware in the United States and launched by Horizon Capital Advisors, LLC for investment mostly in Ukraine.

The IFC board approved the project at a meeting on June 5, IFC said in a statement.

IFC's investment will not exceed 20% of the total fund size. Small- and medium-sized growing enterprises are expected to be main recipients of EEGF III investment.

IFC recalls it is an investor of EEGF II fund, and participation in the new fund will help Horizon complete individually launched investment projects.

The European Bank for Reconstruction and Development (EBRD) can be engaged as a co-investor of the fund, the statement said.

As reported, U.S.-based Overseas Private Investment Corporation in June 2016 reported the disbursement of up to $37.5 million to EEGF III fund, launched by Horizon Capital, for up to 10 years.

The fund with a declared volume of $150 million will focus on medium-sized fast-growing, export-oriented companies in Ukraine and Moldova with the potential to become local or regional market leaders. It is assumed that the fund will make investment by buying a minority stake in such companies. At the same time, if necessary, it is also possible to provide seed capital for start-ups, acquire businesses or participate in privatization.