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Central starts first venture capital fund for Hungarian SMEs

  The Central group has started Hungary’s first privately-owned venture capital fund exclusively for Hungarian SMEs the board of Central-Fund Venture Capital Fund said at a press conference on Friday.

The fund, launched with registered capital of HUF 5.2 billion ($23 million), plans to invest in companies in difficult situations, companies whose performance would improve markedly with a capital injection.

The fund sees about 2,000 possible targets with potential for generating HUF 2-10 billion of revenue. The fund aims to invest HUF 750 million to 1 billion per company in 6-8 companies for periods between three and five years.

It expects a return of more than 25%, said board member Zoltán Varga. It will take controlling stakes in all of the companies it invests in, he added. The fund will run for periods of five and ten years. The fund’s first investment will be made by year-end. (MTI-Econews)