The Small Business Development Financial Company (KVFP), a state-owned company which invests in small Hungarian companies, invested Ft 858 million in 15 companies in 2006, more than in any year before, KVFP told MTI on today.
Small Business Development Financial Company (KVFP) has invested Ft 2.435 billion in 40 companies since 2003. Investments have varied between Ft 20 million and Ft 98 million per company. KVFP has exited eight companies so far, parting with stakes worth a combined Ft 474 million.
At the end of 2006, KVFP's portfolio contained investments in tourism and catering companies, reflecting 22.5% of the value of the portfolio, food companies (14.4%), packaging companies (13.7%), machinery companies (10.2%), wood processors (8.3%), trade companies (7%), IT and communication companies (5.4%) and data management companies (5.1%).
Investments reflecting less than 5% of the total portfolio were made in chemicals companies, medical equipment companies, ceramics makers and environmental companies. KVFP invests in companies through a capital raise and the acquisition of at least a 49% stake.
KVFP operates as a for-profit company, but with minimal profits. Therefore it requires a yield of just 1.5% over the BUBOR. KVFP's net assets of Ft 3.5 billion are owned by the Hungarian Development Bank (MFB), with 88.24%, and credit guarantor Hitelgarancia, with 17.76%. Both MFB and Hitelgarancia are state owned. (Mti-Eco, Bloomberg)