Eximbank and OTP Bank are set to launch Regional Private Equity Fund II, with HUF 25 billion of starting capital provided equally by the two companies, according to a press release by OTP Group member PortfoLion, the company which will manage the new fund.
At present, only the approval of the National Bank of Hungary (MNB) is required for the launch of the fund.
The value of investments is expected to be between EUR 3 and 15 million. Following the launch of the new fund, the capital managed by PortfoLion will almost approach HUF 100 billion, the press release notes.
"Following the steps of PortfoLion Regional Private Equity Fund I, we want to build regional from local and global from regional success stories with the second fund," said Jenő Nieder, deputy CEO of PortfoLion.
The company notes that Regional Private Equity Fund II intends to carry out 100% buy-outs similar to previous transactions and remains open to scale-up financing for companies that are predestined to dynamic international expansion, like Codecool.
The strong regional character is demonstrated by the fact that in addition to Hungary, the Czech Republic, Slovakia, Romania, Bulgaria, Serbia, Slovenia, and Croatia are also target countries for the fund, the company says.
"In line with our previous practice, we not only support the companies in our portfolio financially but also provide active and strong professional support for growth," added Nieder.
The deputy CEO highlighted that the most important task for the coming months is to find the teams, leaders, owners with whom they can build the next success stories in the region.