Private equity investment picks up in Hungary, following CEE trends


Along with the CEE/SEE region experiencing a recovery in deal value and an upsurge in activity, as an increasing number of international investors visit or return to the region, Hungary has recently been the venue for, or contributed assets to, some of the most significant and highly valued regional deals, Levente Zsembery, HVCA Chairman and CEO of X-Ventures said yesterday.

“Hungarian companies are considered investment targets for not only strategic but also financial investors,” Zoltán Dömötör, executive director at EY, said yesterday, speaking at the Hungarian Private Equity and Venture Capital Associationʼs (HVCA) 18th annual conference on Private Equity, Venture Capital and Corporate Finance in Central and Eastern Europe (CEE) held yesterday in Budapest. 

“Our latest M&A Barometer results show that the share of financial investors varied between 25-48% of total deal volume throughout the past six years – one of the highest ratios in the CEE/SEE region. A large share was driven by JEREMIE investments, but we also see regional and global PE funds investing in Hungarian businesses,” Dömötör added.

According to data from MergerMarket, private equity saw a full-year increase of almost 680% in investment activity in CEE for 2015, as compared to 2014, with €14.1 billion invested, a press release published yesterday after the event says.

Commenting on the marketʼs stance in general, Joseph Andrew, Global Chairman of Dentons, said that the most important challenge to global progress and prosperity is answering the basic question of how can the tensions between globalization and cultural identity be resolved. “The rule of law can help mitigate the tension between globalization and cultural identity by providing the rules of the road for commerce that are predictable, enforceable and adaptable to local cultures and to various forms of government and economic systems,” Andrew added.

The Hungarian Venture Capital and Private Equity Association (HVCA) was established in 1991. The organization’s main aim is to represent the interests of the private equity and venture capital industry in Hungary by supporting its members and promoting adherence.

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