Highland Capital Partners announced the first closing of its inaugural private equity fund dedicated to the Kyrgyz Republic, securing $15 million in commitments. The fund, targeting a total of $30 million, anticipates a final close by August 2019. This marks the first institutional private equity fund within the country.
Highland Capital Partners: Bridging the SME Funding Gap
The Highland Private Equity and Mezzanine Fund addresses a critical need for capital access among Kyrgyzstani small and medium enterprises (SMEs). These businesses often face significant challenges in securing funding for expansion. The fund will provide growth capital ranging from $800,000 to $5 million, focusing on sectors such as services, agricultural processing, healthcare, education, telecommunications, media, and technology.
IFC and Strategic Investors Back Highland Capital Partners
A significant investor in the fund is the International Finance Corporation (IFC), a member of the World Bank Group, contributing $8 million. This investment underscores the IFC’s commitment to fostering SME growth and development within the Kyrgyz Republic. Additional investors include Gregory Serrurier, the fund’s first international investor, and Emil Umetaliev, a prominent local businessman.
Highland Capital Partners: Expertise and Local Knowledge
Cholpon Jumashukurov, expressing enthusiasm for the diverse investor base, highlighted the fund’s targeted investment approach designed to address the significant deficit of risk capital in the Kyrgyz market. The team aims to add value beyond capital provision, leveraging their expertise and local knowledge.
IFC’s Commitment to Kyrgyz Republic’s Private Equity Market
Cassandra Colbert, IFC Regional Manager for Central Asia, emphasized the strategic importance of this investment in stimulating SME investment and fostering the development of a local private equity market. The IFC’s involvement signals confidence in the Kyrgyz Republic’s potential for investors. Highland Capital Partners is well-positioned to leverage the country’s favorable economic environment, including its rapidly growing sectors, liberal currency and capital repatriation policies, and expanding middle class.
Highland Capital Partners: Positioned for Growth
With $15 million secured in its first closing, Highland Capital Partners is actively seeking to reach its $30 million target by August 2019. The fund’s investment strategy is tailored to capitalize on the significant opportunities within the Kyrgyz Republic’s dynamic economy.
