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CE Fund of Funds topped up to EUR 97 mln

The European Investment Fund (EIF) and the Hungarian Development Bank (MFB) today announced the latter’s commitment to the Central Europe Fund of Funds (CEFoF). The money will be used to support a larger number of venture capital and private equity funds focused on expansion.

The CEFoF, managed by the EIF, was launched with EUR 80.3 million in late December 2017, together with OeEB (the official development bank of Austria, on behalf of the Ministry of Finance), ČMZRB (Czech Republic), SZRB Asset Management (Slovakia), the Slovene Enterprise Fund (SEF, Slovenia) and the International Investment Bank (IIB), recalls a press release sent to the Budapest Business Journal.

MFB’s commitment of EUR 10 mln, plus a EUR 6.7 mln EIF top-up, has now brought the total fund size to EUR 97 mln. This will allow the CEFoF to support a larger number of venture capital and private equity funds focused on expansion and growth-stage investments, and to mobilize additional resources for equity investments in SMEs and small mid-caps in the five Central European countries, explains the press release.

The announcement was part of the so-called CEFoF roadshow – a series of presentations of the new regional equity initiative to local fund managers and media, organized by the EIF and its local partners in Austria, the Czech Republic, Slovakia, Hungary and Slovenia.

Speaking at the annual HVCA-Portfolio Investment Conference organized by the Hungarian Private Equity and Venture Capital Association (HVCA) in Budapest, EIF’s Head of Mandate Management Hubert Cottogni said that MFB’s participation would increase the overall pool of available resources while helping ensure that Hungarian businesses will benefit from this initiative alongside their Central European peers.

With MFB, the CEFoF has reached its intended pool of investors, the press release states. The initiative has had a successful start, with the fund of funds having already signed commitments of EUR 15 mln to two Central European funds, ESPIRA Fund I and ENERN Tech III.