Hungarian gov't launches HUF 60 billion capital programme

There are almost 16,000 export capable Hungarian-owned SMEs in Hungary, and exports as a share of GDP exceed 60%. Investing abroad is a capital-intensive activity, which is why state incentives in this area are justified, the NTH wrote.

Along these lines,

National Capital Holding is launching a Private Equity fund for the expansion of Hungarian companies abroad with a budget of $165 million, or around HUF 60 billion.

The aim of the fund is to support the international projects of Hungarian market players and to promote their entry into foreign markets. The fund is managed by Focus Ventures Zrt., an NTH-owned company focused on equity investments in large companies.

Geographically, the fund will invest primarily in Europe, with a focus on Western and Central-Eastern Europe, and Asia, with a particular emphasis on the Central Asia region.

In terms of targeted sectors, the Fund has a general approach, but focuses on the sectors highlighted in the Competitiveness Strategy, such as agri-food, logistics, renewable energy, light industry, ICT, raw materials and health.

Each investment can be worth between $1 million and $25 million. Each transaction requires a minimum co-investor contribution of 30%, i.e. equity from Hungarian companies wishing to invest. In addition to risk sharing, the fund expects a minimum industry-specific return on investment.

"We are currently in the phase of active project search, so we are constantly looking for potential investment and capital placement opportunities and we are processing the applications of the target companies as quickly as possible", added Bence Katona, CEO of National Capital Holding.

Cover photo: Portfolio