Norfund Invests in Dragon Capital’s Rebuild Ukraine Fund to support Ukrainian SMEs

Norway’s Ukraine Investment Fund, managed by Norfund, is investing USD 15 million in the Rebuild Ukraine Fund (REBUF), managed by Dragon Capital, to help address the shortage of equity capital for Ukrainian businesses.

The ongoing war has severely constrained investment activity, leaving small and medium-sized enterprises (SMEs) without the resources needed to grow, create jobs, and contribute to Ukraine’s economy. SMEs are employing over 60% of the workforce in Ukraine.

The Rebuild Ukraine Fund targets a total size of USD 250 million and will focus on majority investments in resilient businesses across sectors such as consumer goods, healthcare, manufacturing, and technology.

“As in Norway, small and medium-sized enterprises form the foundation of Ukraine’s economy. This investment strengthens these businesses, enabling job creation, resilience, and reconstruction during wartime,” says Åsmund Aukrust, Norway’s Minister of International Development.

Norfund’s investment will be part of the fund’s first close, alongside commitments from other European development finance institutions including IFC and EBRD. Together, these contributions will help mobilize additional international capital and strengthen Ukraine’s private sector.

“By providing growth capital to these businesses, we are supporting job creation, innovation, and the rebuilding of critical supply chains. With a dedicated team on the ground and a strategy built for wartime conditions, REBUF will support companies with strong local roots and growth potential,” says Tellef Thorleifsson, CEO of Norfund.

Dragon Capital’s track record and deep local presence make it a great choice for a trusted partner for Norfund in Ukraine.

“The reconstruction of Ukraine depends on companies that continue to operate and invest despite the war. Partnership with Norfund allows Dragon Capital to direct more capital to businesses that are developing new products, expanding capacity, and strengthening local industries. We appreciate the trust of international partners and remain focused on turning it into long-term, practical results for the Ukrainian economy”, says Tomáš Fiala, Founder of Dragon Capital.

This is the second investment made under Norfund’s Ukraine Investment Mandate, which aims to support high-risk, high-impact investments that contribute to the country’s resilience, reconstruction, and long-term integration with European markets.

“Norway’s support for Ukrainian businesses is also an investment in freedom, democracy and economic resilience. By helping sustain economic activity, we strengthen Ukraine’s ability to withstand the aggression and to shape its own future,” says Minister Aukrust.