He called stimulating the activity of investors a key issue for market development. “The capital financing of the 8-10 thousand Hungarian medium and large companies is a challenge, as the capital availability of these companies is at a low level compared to the region,” said Bence Katona, president and CEO of Nemzeti Tőkeholding.
It is one of the largest in Central and Eastern Europe
Bence Katona also reminded that the Baross Gábor Capital Program was launched, its first sub-programs aimed at real estate and securities funds have already brought good results: 13 funds of ten investment fund managers won the tender, a total of HUF 164 billion in capital was invested. Then, the second pillar of the Gábor Baross Capital Program, the Green Funds Capital Program, was launched with a HUF 200 billion budget;
as part of this, the first capital fund was registered, which supports the implementation of developments aimed at the green transition with HUF 50 billion.
The president and CEO explained that NTH carries out its capital investment activities through two specialized competence centers: Hiventures, as a stable player in the domestic venture capital market, helps startups, and Focus Ventures helps medium and large companies that have already proven themselves in the domestic market in their further development.
Since its inception, Hiventures has made capital investments in more than 450 startup companies in about 7 years, thereby enabling the launch of 250 companies. It has become one of the largest and most active venture capital fund managers in Central and Eastern Europe.
Hiventures has fulfilled its role as a catalyst and market developer in the domestic startup market, and the strengthened domestic startup ecosystem will be able to function effectively in the future even with moderate state participation. Henceforth, Hiventures will continue to operate exclusively as a competence center for venture capital investors.
Then Bence Katona announced that, as of this year, Focus Ventures, a separate company within the NTH group, will manage the company portfolio of Hiventures, which currently consists of 39 companies and has an annual revenue of about HUF 391 billion, as well as the management of capital funds aimed at the development of mature companies and new placements related tasks. Domestic funds invested by NTH have so far invested HUF 1,097 billion in 488 companies, Bence Katona concluded, according to the MTI report.
Our interview with Bence Katona is available at the link below.
The capital market is gaining new momentum
The National Capital Holding was established on January 1 of last year with the aim of making the allocation of capital funds of existing, partially or fully state-backed capital funds even more effective, revising fund management agreements, mobilizing domestic investors, and implementing capital programs to fill gaps in order to develop the market. Thanks to processes that ensure more efficient and transparent operation, significantly
The utilization of the coordinated 51 funds increased from 49 to 67.6 percent, and the amount of fund management fees was uniformly maximized by 1.5 percent per year.
He launched the Gábor Baross Capital Program, whose first sub-programs aimed at real estate and securities funds have already achieved quantifiable results – read the background material sent to the press.
The joint goal of NTH and its legal practitioner, the Ministry of National Economy (NGM), is to contribute to the improvement of the investment environment, to stimulate the development of the economy by increasing the capital supply of companies, thereby promoting the competitive position of domestic enterprises in all industries. In order to operate as efficiently as possible, NTH is renewing its internal structure, through which Hungarian businesses will receive even more effective assistance in the future.
Accordingly, capital investment activities adapted to the life cycle, growth goals and special financing needs of the two larger target groups – already mature companies and nascent innovative startups – are carried out by NTH through two specialized competence centers. As a stable player on the domestic venture capital market, Hiventures helps startups, and Focus Ventures helps medium and large companies that have already proven themselves on the domestic market to further develop, they summarized in the background material.
