Ministry of Investment, Industry and Trade of the Republic of Uzbekistan

As part of the Tashkent International Investment Forum, an important panel session entitled “Alternative Investment Funds: Regulatory Frameworks for Institutional Capital” was held to discuss mechanisms for improving private capital mobilization and financing innovative projects.

The international dialogue brought together leading experts in finance, law, and investment, including:

• Alyona Dolgova, Financial Market Development Consultant at the United Nations Development Programme (UNDP) – Moderator;
• Kazbek Bassiev, Senior Vice President, New Business Development, Head of Representative Office of Vision Invest in Uzbekistan
• Thea Jokhadze, Partner at Jokhadze Capital Advisors;
• Shukhrat Yunusov, Partner at Kosta Legal;
• Shaun Reader, Partner at Curtis, Mallet-Prevost, Colt & Mosle LLP;
• Sergey Salikov, Chief Legal Counsel at Uzum National Digital Ecosystem;
• Ádám Szentpéteri, Acting CEO, Chief Financial Officer (CFO), and Chief Transformation Officer (CTO) of JSCMB Ipoteka-bank (OTP Group).

Kazbek Bassiev, representing Vision Invest, announced that a new draft law on private equity and venture capital funds has been submitted to the Government of Uzbekistan, describing it as a systemic step that could lay the foundation for long-term success in the sector.

According to Bassiev, Vision Invest views Uzbekistan as an emerging economic bridge and advocates for making the country’s tax and foreign exchange framework more attractive to institutional investors while expanding opportunities for investment in local startups.

“Our company views Uzbekistan as an economic bridge and proposes further enhancing the attractiveness of the country’s tax and foreign exchange framework for institutional investors, while expanding opportunities to invest in local startups,” Bassiev said.

Shuhrat Yunusov, Partner at Kosta Legal, emphasized the need to modernize and improve Uzbekistan’s existing legal framework governing private equity (PE) and venture capital (VC) funds in line with contemporary market requirements.

According to him, the current partnership legislation contains certain legal constraints that limit management companies from operating multiple funds simultaneously and from utilizing modern financial mechanisms such as phased capital commitments (capital calls). The new draft law currently under development aims to simplify relationships between General Partners (GPs) and Limited Partners (LPs) in accordance with international standards while creating a more favorable environment for market participants.

“The current system is somewhat rigid and complex in regulating relationships between fund managers and investors. For example, adding a new investor to a fund or making amendments often requires unanimous approval from all partners. Aligning with global practice requires change. For the first time, the new draft law clearly defines fiduciary duties and grants investors the right, under certain circumstances, to remove a fund manager. This will improve transparency and significantly strengthen investor confidence in the market,” the expert noted.

The development of investment funds in Uzbekistan requires more than the establishment of an appropriate legal framework. According to Thea Jokhadze, Partner at Jokhadze Capital Advisors, the sector’s growth also depends on a flexible tax regime, streamlined regulatory procedures, and the introduction of a trusted English-law jurisdiction. Equally important is the formation of a pool of qualified local investors and fund managers, as well as the deepening of the capital market.

She noted that, over the next two to three years, the establishment of an independent fund of funds structure supported by both public resources and international financial institutions could become a key catalyst for the development of the country’s investment ecosystem.

“Georgia’s experience demonstrates that while legislation was necessary, it was not sufficient on its own to drive the industry’s development. This is a distinction that Uzbekistan should carefully consider. For the market to function effectively, it requires a flexible tax and regulatory framework, an independent English-law jurisdiction, qualified local LPs and GPs, and a deep capital market. I would focus on creating a fund of funds structure that combines public resources with capital from international financial institutions. Such a mechanism would simultaneously create an early-stage domestic investor base, serve as an anchor for international investors, and support the development of local fund managers,” she said.

Participants noted that Uzbekistan is currently taking consistent and transformative steps toward establishing a modern alternative investment ecosystem. In particular, extensive discussions focused on the practical implementation of a comprehensive legal framework designed to promote and protect private equity and venture capital activities.

The session explored ways to translate ongoing regulatory and legal reforms into tangible market growth and to further expand the participation of international investment funds in Uzbekistan. Participants emphasized the importance of creating a competitive environment capable of attracting long-term institutional capital and supporting sustainable economic development.

Throughout the discussion, leaders of leading global and regional private equity and venture capital funds shared their strategic perspectives on mobilizing institutional capital for Uzbekistan’s economy and strengthening local expertise and capabilities in fund management.

Special attention was also given to mechanisms for creating a continuous and sustainable pipeline of investment-ready projects capable of attracting both domestic and international investors.

The panel discussion ultimately served as a platform for identifying concrete policy and economic measures that can help transform Uzbekistan into a genuinely competitive, open, and trusted hub for alternative investments in Central Asia and beyond.