Hiventures, the venture capital fund manager of the Hungarian Development Bank (MFB), has announced the creation of a unit with HUF 31 billion in capital that will focus on Hungarian SMEs, rather than startups, state news agency MTI reported.
The unit will target companies facing generational change in management, family companies wanting to bring in outside leadership, companies looking to expand their activities with domestic or foreign acquisitions, or those wanting to invest abroad, Hiventures was cited as saying.
The unit will make investments of between HUF 50 million and HUF 3.1 bln, but expects its partners to cover around 30% of total costs. The unit targets an annual return of 10% on its investments.
Hiventures noted that startups attract 80-90% of the HUF 200-250 bln of available venture capital in Hungary at present.