The International Finance Corporation (IFC), part of the World Bank Group, has invested $25mn in the Rebuild Ukraine Fund LP (REBUF), a private equity fund launched by Ukrainian investment group Dragon Capital to support small and medium-sized enterprises, reported Ukraine Business News.

The Rebuild Ukraine Fund, created in 2024, aims for a target size of $250mn and will focus on sectors such as consumer goods and services, healthcare, pharmaceuticals, financial services, agribusiness, construction materials, retail, and technology. The IFC will act as an anchor investor, backed by a partial first-loss guarantee covering 50% of its investment, provided by the French government and other guarantors.

Dragon Capital described the IFC’s participation as critical for the fund’s first closing, noting that securing private investment amid ongoing war remains a challenge. The company itself has committed $20mn to the fund, while the European Bank for Reconstruction and Development has pledged an additional $25mn.

Since the war began, the IFC has supported only one comparable initiative — the $350mn Horizon Capital Growth Fund IV. The organisation expects the Rebuild Ukraine Fund to attract further financing mainly from development finance institutions (DFIs).

Dragon Capital said the fund aims to accelerate post-war reconstruction by providing long-term capital to resilient Ukrainian businesses capable of driving economic recovery.