Business

Hiventures establishes SME fund

Hiventures, the venture capital fund manager of the Hungarian Development Bank (MFB), has launched a new unit to support small and medium enterprises (SMEs).

Currently, there are 200-250 billion forints (600-750 million euros) of equity capital available on the market, but about 80-90 per cent is to help start-up financing, meaning that there is little focus on SMEs.

“With this new line of business, we aim to be a major equity finance partner in the SME sector, and thus contribute to the competitiveness of market players and their international presence through our unique equity investment products,” said Bence Katona, deputy CEO of Hiventures.

The 31 billion-forint fund (94 million euros) targets those companies facing generational change in management, family companies wanting to bring in outside leadership, firms looking to expand their activities with domestic or foreign acquisitions, or those wanting to invest abroad.