Global consulting firm joins Ukraine minerals deal fund as investment advisor
Alvarez & Marsal has been tapped as the investment advisor for the U.S.-Ukraine minerals deal, officials announced on Nov. 14, the latest step in a widely-watched agreement to invest in Ukraine's critical resource sectors.
The New-York based firm has experience in the critical minerals, energy, and infrastructure sectors, all areas targeted by the investment fund created as part of the deal. As the fund’s investment advisor, it will help prepare projects, and conduct due diligence and financial analysis for potential opportunities.
"The participation of such a partner ensures a transparent decision-making system, adherence to international standards of management, audit and compliance, and increases the confidence of international investors in the fund," the Economy Ministry wrote in a press statement.
Alvarez & Marsal, which has a team in Ukraine, was selected by the fund’s Steering Board, equally made up of six representatives from the U.S. and Ukraine. The next step will be to appoint a fund administrator to develop the investment guidelines so that the first projects can be launched, although neither the DFC nor Kyiv has pencilled in a date yet.
"Through the partnership with A&M, the fund will help rebuild Ukraine’s economy and strengthen industries that benefit both Ukraine and the United States," Conor Coleman, DFC’s head of investments and chief of staff, said in a press statement.
The landmark deal was signed on April 30 after tense negotiations between U.S. President Donald Trump and President Volodymyr Zelensky. News around the deal has been quiet since September, with employees of the DFC, which is constructing the fund’s framework alongside Kyiv, furloughed during the 43-day U.S. government shutdown.
The fund gives the U.S. favorable access to investment projects in Ukraine, spanning natural resources, related infrastructure, and even defense projects. For the first ten years, profits from the reconstruction investment fund will be fully reinvested in Ukraine’s economy.
On Sept. 17, Washington and Kyiv announced they would invest $75 million each to kickstart the fund, with the DFC providing Washington’s contribution. Kyiv will split its $75 million share between this year's budget and next year's.
The fund’s six board managers met for the first time on Sept. 3. The following week, a DFC delegation arrived in Ukraine and began scouting starter projects, including a titanium, zirconium, and hafnium deposit on Sept. 15.
