IFC Invests US$10 Million in Highland Fund

Tashkent, Uzbekistan (UzDaily.com) — Small and medium-sized enterprises in Uzbekistan and the Kyrgyz Republic are set to gain improved access to financing following an investment of up to US$10 million by the International Finance Corporation (IFC) into Highland Central Asia Fund II, according to an official statement.

The investment is aimed at supporting private sector development, creating new jobs, and strengthening the regional private equity market. Small and medium-sized enterprises are considered a key component of Central Asia’s economies, accounting for a significant share of private sector employment and contributing to overall economic resilience.

Highland Central Asia Fund II is described as the only institutional private equity fund operating simultaneously in Uzbekistan and the Kyrgyz Republic. The fund has a target size of US$75 million and plans to invest in 10 to 15 companies across healthcare, pharmaceuticals, retail, logistics, food production, real estate, and hospitality sectors.

Previously, private investment volumes in the region remained limited. Highland Capital’s first fund in the Kyrgyz Republic, established in 2018 with IFC support of US$8 million, invested US$21 million in 12 companies, helping to create more than 900 jobs.

Co-founder of Highland Capital, Eldan Usubakunov, said that entering the Uzbek market marks an important step in the company’s expansion and contributes to strengthening the investment ecosystem in Central Asia.

IFC noted that its participation as a key investor helped the fund reach its first close and attract additional investors, including development institutions.

According to Farid Fezoua, IFC Global Director for Equity Investments, Funds, and Venture Capital, the project is aimed at addressing financing gaps for SMEs and supporting job creation.

IFC will also provide advisory support to improve fund management efficiency and enhance the value of portfolio companies.