The International Finance Corporation (IFC) has committed up to US$10 million as an anchor investor in Highland Central Asia Fund II, a private equity fund established to expand access to long-term financing for small and medium-sized enterprises (SMEs) in Uzbekistan and the Kyrgyz Republic. The investment is intended to address the shortage of growth capital available to SMEs, support private sector development, create jobs, and strengthen the private equity ecosystem in Central Asia. As an anchor commitment, IFC's participation is expected to attract additional institutional investors and help the fund achieve its fundraising target of US$75 million. 

Highland Central Asia Fund II plans to invest in 10 to 15 high-growth SMEs across a broad range of sectors, including healthcare, pharmaceuticals, food and beverages, hospitality, consumer goods, construction materials, real estate, logistics, and retail. By providing equity financing and strategic support, the fund aims to improve the productivity, competitiveness, and long-term sustainability of portfolio companies. It is currently the only institutional private equity fund actively investing in both Uzbekistan and the Kyrgyz Republic, where access to risk capital remains limited. 

The investment builds on IFC's longstanding partnership with Highland Capital. In 2018, IFC invested US$8 million in Highland's first private equity fund in the Kyrgyz Republic. That fund invested US$21 million across 12 companies, helping create more than 900 jobs and demonstrating the potential of institutional private equity to support business growth in underserved markets. The success of the first fund laid the foundation for Highland Central Asia Fund II, which expands the firm's investment strategy to include both Uzbekistan and the Kyrgyz Republic.