Fund of Funds
Ukraine
Ukraine 1% Investment Pledge
Ukraine is at the crossroads of its economic development today and is facing a number of hard challenges.
Investments in businesses started by Ukrainians are extremely scarce and difficult to obtain.
UVCA invites investors and others to invest 1% or more of their investment capital in investments that contribute to the recovery and reconstruction of Ukraine and are assigned to Ukrainian investment funds, companies and private enterprises.
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Why make the Ukraine 1% Investment Pledge?
Making the Ukraine 1% Investment pledge now signals an intent to invest in Ukraine’s economy, to support Ukrainian entrepreneurs and businesses, recognising the attractive investment opportunities that are and will increasingly become available through both the public and private sectors, and the benefits to wider investment portfolios of ensuring the long-term stability of the country.
Making the Ukraine 1% Investment pledge now sends a message to the investment community that an investor shares the interests of others involved in supporting the restoration and development of Ukraine’s economy , and wishes to be considered seriously as capital providers for relevant investment opportunities, whether driven by the public or private sector.
The UVCA believes that the recovery and reconstruction of Ukraine is an inherently worthwhile aim, and (along with many others in the Ukraine business community) will value the vote of confidence from those in the investment community seeing Ukraine as a place of financial opportunity. And we recognise that committing to Ukraine 1% Investment pledge should fit well with many institutional investors mindful of responsible investment considerations, and asset managers operating under relevant impact investment mandates.
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But Ukraine 1% Investment pledge is not about charity or making donations. This initiative is primarily about taking a decision now to allocate capital towards the Ukrainian funds, companies and entrepreneurs for an appropriate investment return.
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Donations are invaluable in providing crucial emergency resources for Ukraine. However, UVCA believes that rebuilding the Ukrainian economy will require making long-term commercial investment decisions for investing in Ukraine. The Ukraine 1% Investment pledge will help drive this objective.
Not about charity or donations
Ukrainian investment community is working now on the recovery and reconstruction of Ukraine’s economy, and will increasingly be seeking investment from appropriate capital providers. You can be one of them.
We appreciate that those making the Ukraine 1% Investment pledge must undertake an assessment of the opportunities and risks involved from the perspectives of various stakeholders (including their ultimate beneficiaries). But this assessment must be undertaken in light of the attractive investment opportunities that the recovery and reconstruction of Ukraine will lead to in the future, as well as the benefits of making a public statement now in the context of future allocations of investment opportunities by public and private sector actors, and the wider financial benefits to investors (and the investment management community) of supporting Ukraine.
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After making the Ukraine 1% Investment pledge, investors will make their own assessments of which funds or other investment tools will allow them to achieve their objectives in line with investment criteria acceptable to them, in the general context of the recovery and reconstruction of Ukraine and, in particular, the current investment opportunities in Ukrainian funds and enterprises together with current investors who continue to invest in Ukraine.
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The Ukraine 1% Investment pledge inherently involves pledging to allocate capital in connection with Ukraine based projects, Ukrainian founders and entrepreneurs working globally, and companies that have substantial workforce and R&D in Ukraine (within a broadly defined objective that investors and others may refine for their specific purposes).
Adopting Ukraine 1% Investment Pledge now
But Ukraine 1% Investment pledge does not require investors to disregard their broader investment criteria or policy requirements. Ukraine 1% Investment pledge is not an invitation to lower investment standards.
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How to make the Ukraine 1% Investment pledge
UVCA welcomes commitments from investors, funds, asset managers, corporations, organizations and others to provide 1% or more of their investable capital towards investments in Ukrainian enterprises, companies and funds. Any investor is welcome to make the Ukraine 1% Investment pledge, and to discuss with its asset managers how to achieve this aim.
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Investors and others could consider existing commitments to funds or other Ukraine related investments and could consider satisfying the pledge by sustaining that capital allocation (and so, upon exit, reinvesting in line with the pledge) over time.
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We recognise that the way in which the Ukraine 1% investment pledge is expressed and the extent of available investment capital will necessarily vary from organisation to organisation. The UVCA would be delighted to discuss possible formulations with those considering making it.
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We also recognise that investments made to satisfy the pledge may need to be in line with an investor’s wider investment criteria (including regarding appropriate investment returns), policies, processes, methodologies and objectives. Those making the pledge may wish to consider how they report on their performance against the pledge (perhaps in annual reports or similar documents).
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The pledge itself could be announced, or published on an organisation’s website or on any other publicly available platform.
Disclaimer:
UVCA is a representative body for the Ukraine venture capital and private equity community. UVCA does not give investment advice or arrange investments. This page is not an offer (or solicitation to offer or recommend) in respect of any investment product, and does not take into account your individual needs, investment objectives and specific financial circumstances. All investors, asset managers and others are responsible for evaluating the merits and risks associated with the use of this information and ultimately for making any investment decision based on this information. UVCA makes no warranties regarding this information, and accepts no liability whatsoever for any loss (howsoever arising) from or in connection with any use or reliance of the information contained on this page.