Venture Fund Management

Venture Fund Management

Please follow the link for the general benefits of investing in Ukraine with a fund and for the key specific features of  funds.

Venture funds set up in accordance with Ukrainian legislation face less protective regulations than other types of funds because it is assumed that investors in such funds – that by law can only be legal entities, not individuals - are more knowledgeable and better able to protect themselves.

Less regulation is exemplified, among other things, by the following:

• all funds can be invested in non-listed securities;
• there are no limits on different asset classes or individual securities percentages of the total portfolio;
• a venture capital fund can extend credits to the companies if it is an investor in such companies.

Combination of allowed flexibility and tax incentives common for any collective investment vehicle makes venture capital funds almost ideal vehicle for any type of investments in Ukraine, ranging from

• Classic portfolio venture capital investments by a VC firm or fund seeking financial objective as the goal, to
• Corporate venturing, whereby a non-financial corporation invests in businesses that can fit in the global parent company business providing either synergy or cost-savings, i.e. with a strategic corporate goal in mind.

Customized “sole-investor” funds  For clients with larger investment resources, KINTO can set up separate custom-tailored investment funds of their own to accommodate for specific strategy preferences. A fund can be effectively owned by a single shareholder.

Taking one step further, a sophisticated portfolio investor might also benefit from setting up a Ukrainian venture capital fund as a gateway to investments in Ukrainian securities. Such a vehicle could be viewed as a quasi individual managed account.