EU-Armenia SME Fund, a private equity fund managed by Amber Capital Armenia and supported by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), has completed an investment in ACX group of companies - a specialized customer support and compliance services provider to leading global digital asset companies.

The proceeds of the investment will be utilized to grow the operations of ACX in Armenia, provide specialized training, increase hiring, obtain international certifications and allow the company to expand the geographic reach of its business to South America and Asia.

ACX is the world’s first provider of such services to the digital assets industry. With over 100 full time specialized employees in Armenia, ACX has quickly become the market leader in this fast-growing field with prominent clients from the United States, Europe and Asia.

ACX was able to leverage the unique advantages of Armenia including its highly skilled and multi-lingual human capital. ACX has also enabled dozens of Armenians from the diaspora to repatriate to Armenia to work for ACX.

In line with the Fund’s mandate, the investment seeks to create value not only through providing equity capital, but also through the introduction of best-in-class ESG standards, enhancing corporate governance and facilitating growth opportunities. The investment in ACX is expected to result in high value job creation, repatriation opportunities for the Diaspora, innovative digitalization and increased connectivity of Armenia to the global markets.

Vahan Kerobyan, the Minister of Economy of Armenia, remarked on the importance of similar transactions for the country. “Private equity investments are a strong signal that the economy is becoming increasingly attractive for doing business and is able to provide diversified sources of funding. Similar investments play a key role in fostering the investment climate, facilitating the transfer of knowledge and enhancing the corporate landscape of Armenia. We hope to see many more equity transactions in the coming months”.

Henri Arslanian, the majority shareholder and a member of the board of directors of ACX, noted: “Digital assets are here to stay and we are proud of the role that ACX is playing in building the Armenia 2.0 focused on leveraging cutting-edge technologies and highly skilled human capital.”

Anushavan Simonyan, CEO of Amber Capital Armenia, highlighted the importance of the transaction for the Fund, as well as for the development of the industry in Armenia. “Following several months of active communication with the company, our investment team is delighted to join efforts with such an aspiring and highly professional team. As a service provider in one of the fastest-growing industries globally, the company has an important role in training young talent and bringing international business practices to Armenia.”

The EU-Armenia SME fund launched its operations in Armenia in January 2020 with investments from the EU, EBRD, Amundi-ACBA Asset Management, the Hirair and Anna Hovnanian Foundation and the investment team of Amber Capital Armenia.

It has since raised further capital from the Armenian National Interests Fund, C-Quadrat Ampega Asset Management Armenia, the Dutch Entrepreneurial Development Bank (FMO) and the Government of Armenia, as well as a number of Diaspora investors, with total committed capital of over USD 60 million. The fund is committed to funding the sustainable growth of Armenian SMEs through capital investments and introduction of high standards of environmental, social and corporate governance practices.