Soul Partners, a Ukrainian boutique investment advisory firm, has successfully secured financing for two leading producers of hydraulic cylinders based in Zaporizhzhia region, Agro Master Plus and PE Magistr. This was undertaken under the framework of a cooperation with the USAID "Economic Resilience Activity", which begun in late 2020, for the purpose of mobilizing investments for small and medium enterprises (SMEs) in the Donetsk, Luhansk and Zaporizhzhia regions. Soul Partners conducted a comprehensive overview of SMEs in the abovementioned regions and selected four companies, Agro Master Plus and PE Magistr, as well as private clinic network LLC “Kod Zdorovia”, and supplier of gases and gas welding equipment Azovtechgas, both from Donestk region, who were all seeking funding support.
Prior to launch of full-scale war on 24th February, 2022 by Russia, Soul Partners had successfully attracted debt financing for Agro Master Plus and PE Magistr which unlocked production bottlenecks for both SMEs, and significantly increased production capacity and export revenue.
However, Agro Master Plus’ production facilities in Melitopol were occupied when Russia invaded the city, causing the firm to relocate and open the production branch from scratch in Mykolaiv, Lviv region. This relocation necessitated extra funding, again under Soul Partners leadership and with USAID ERA support. In February 2023, the parties successfully attracted this financing which will help launch the new production facilities for the hydraulic cylinders in Lviv region with the same capacity and technical characteristics comparable to the existing plant in Melitopol.
It worths noting that the investment targets initially agreed with USAID ERA were significantly over-performed, and the process was completed within the established timeline.
Iryna Dzhus, Director at Soul Partners said:
“Investment banking services normally, can only be afforded by large companies. But, the USAID «Economic Resilience Activity” gives small enterprises a unique opportunity to engage the best investment banking teams on the Ukrainian market to unlock financing for their investment projects. In most cases, it is a real gamechanger for SMEs as they receive access to vital financing that boosts their development.
It is an honor for our team to help USAID ERA to realize their Project goals by attracting investments for Ukrainian SMEs and, most importantly, to help Ukrainian businesses to raise financing and to accelerate their growth and added value generation, especially during war time."
Background information
Soul Partners is a boutique investment banking firm that provides professional financial advisory services to businesses and investors. We are specialized in financing attraction (both equity and debt), merger and acquisition transactions support and debt restructuring services.
USAID Economic Resilience Activity (ERA) was designed to foster Ukrainian economic resilience in the face of Russia’s invasions. ERA supports displaced businesses and persons, and the newly liberated areas of Ukraine, to rebuild their lives and livelihoods and capitalize on entrepreneurial opportunities; and local institutions to rebuild a resilient post-war economy. Also, ERA is now one of the implementers of a U.S. government interagency Agricultural Resilience Initiative (AGRI) to bolster Ukrainian agricultural production and exports and to help alleviate the global food security crisis exacerbated by Putin’s brutal war on Ukraine, and USAID’s Economic Stability and Recovery Initiative (ESRI), focusing on keeping and creating jobs and helping small and medium-sized enterprises (SMEs) survive and grow.
ERA’s objective is to improve Ukraine’s economic resilience in response to Russia’s aggression, including the expanded invasion that began on February 24, 2022, which has disrupted critical market linkages, catalyzed the economic decline of previously dominant industries, and caused massive population disruption. ERA’s focus is to support Ukrainians forced to flee eastern Ukraine.
The activity aims to improve Ukraine’s economic resilience, specifically those Ukrainians impacted by Russia’s expanded invasion, by accomplishing the following objectives: 1) provide assistance to stabilize the economy of Ukraine; 2) support the sustainable development of micro, small and medium enterprises (MSMEs); and 3) build confidence in the future of the Ukrainian economy.
Prior to launch of full-scale war on 24th February, 2022 by Russia, Soul Partners had successfully attracted debt financing for Agro Master Plus and PE Magistr which unlocked production bottlenecks for both SMEs, and significantly increased production capacity and export revenue.
However, Agro Master Plus’ production facilities in Melitopol were occupied when Russia invaded the city, causing the firm to relocate and open the production branch from scratch in Mykolaiv, Lviv region. This relocation necessitated extra funding, again under Soul Partners leadership and with USAID ERA support. In February 2023, the parties successfully attracted this financing which will help launch the new production facilities for the hydraulic cylinders in Lviv region with the same capacity and technical characteristics comparable to the existing plant in Melitopol.
It worths noting that the investment targets initially agreed with USAID ERA were significantly over-performed, and the process was completed within the established timeline.
Iryna Dzhus, Director at Soul Partners said:
“Investment banking services normally, can only be afforded by large companies. But, the USAID «Economic Resilience Activity” gives small enterprises a unique opportunity to engage the best investment banking teams on the Ukrainian market to unlock financing for their investment projects. In most cases, it is a real gamechanger for SMEs as they receive access to vital financing that boosts their development.
It is an honor for our team to help USAID ERA to realize their Project goals by attracting investments for Ukrainian SMEs and, most importantly, to help Ukrainian businesses to raise financing and to accelerate their growth and added value generation, especially during war time."
Background information
Soul Partners is a boutique investment banking firm that provides professional financial advisory services to businesses and investors. We are specialized in financing attraction (both equity and debt), merger and acquisition transactions support and debt restructuring services.
USAID Economic Resilience Activity (ERA) was designed to foster Ukrainian economic resilience in the face of Russia’s invasions. ERA supports displaced businesses and persons, and the newly liberated areas of Ukraine, to rebuild their lives and livelihoods and capitalize on entrepreneurial opportunities; and local institutions to rebuild a resilient post-war economy. Also, ERA is now one of the implementers of a U.S. government interagency Agricultural Resilience Initiative (AGRI) to bolster Ukrainian agricultural production and exports and to help alleviate the global food security crisis exacerbated by Putin’s brutal war on Ukraine, and USAID’s Economic Stability and Recovery Initiative (ESRI), focusing on keeping and creating jobs and helping small and medium-sized enterprises (SMEs) survive and grow.
ERA’s objective is to improve Ukraine’s economic resilience in response to Russia’s aggression, including the expanded invasion that began on February 24, 2022, which has disrupted critical market linkages, catalyzed the economic decline of previously dominant industries, and caused massive population disruption. ERA’s focus is to support Ukrainians forced to flee eastern Ukraine.
The activity aims to improve Ukraine’s economic resilience, specifically those Ukrainians impacted by Russia’s expanded invasion, by accomplishing the following objectives: 1) provide assistance to stabilize the economy of Ukraine; 2) support the sustainable development of micro, small and medium enterprises (MSMEs); and 3) build confidence in the future of the Ukrainian economy.