Highland Capital Raises US$36 Million for Central Asia Fund

Tashkent, Uzbekistan (UzDaily.com) — Highland Capital has announced the first closing of its Highland Central Asia Fund II (HCAF II), securing US$36 million from anchor investors including the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the Silk Road Fund.

The fund aims to reach a final closing size of US$75 million and will focus on supporting growth-stage small and medium-sized enterprises in Uzbekistan and Kyrgyzstan.

Highland Capital plans to build a portfolio of 10 to 15 companies, with investments ranging from US$3 million to US$5 million per business. Priority sectors include food and beverages, retail, fast-moving consumer goods, healthcare and pharmaceuticals, logistics, construction materials, and consumer services.

According to Eldan Usubakunov, the launch of the second fund marks an important milestone for the development of institutional private equity investment in Central Asia.

“The participation of these investors reflects the strong performance of our first fund, supports our expansion into Uzbekistan, and highlights the attractive long-term opportunities in two of Eurasia’s fastest-growing economies,” he said.

Representatives of the anchor investors also commented on the fundraising.

Dirk Werner, Managing Director for Equity Investments at the EBRD, said the bank’s renewed commitment reflects its confidence in the role of private equity in accelerating SME growth across the region.

Farid Fezoua, IFC’s Global Director for Equity Investments, Funds and Venture Capital, said the investment is intended to help address a critical financing gap for small and medium-sized businesses in Central Asia while supporting the development of a broader private equity ecosystem.

Li Hongcheng, Deputy General Manager of the Silk Road Fund, expressed confidence that Highland Capital’s activities would contribute to sustainable socio-economic development and the growth of local investment markets.

Highland Capital was founded by Cholponbek Zhumashukurov and Eldan Usubakunov. In 2018, the firm launched its first institutional fund with support from the IFC, the EBRD and private investors, becoming the first independent institutional private equity manager in Kyrgyzstan.

Through that fund, Highland invested more than US$20 million in 12 portfolio companies operating in consumer-focused sectors.

With the launch of HCAF II, the firm is expanding its investment platform into Uzbekistan. Highland Capital currently operates offices in Bishkek and Tashkent.