MFB Invest Zrt, belonging MFB Group, has started an enterprise development private equity fund (The Municipal Equity Fund) to support small and medium-sized enterprises in Debrecen.
MFB Invest Zrt deals with equity financing of small and medium-sized enterprises, Greenfield projects and national priority projects since 2006. Since the start of its operation, the company has invested nearly HUF 66 billion in domestic businesses.
As part of its new strategy, MFB acquired two Fund Management companies allowing them to manage thematic funds that require special expertise.
First, the Debrecen Municipal Capital Fund, which supports the further development of the economy of the city of Debrecen, will be launched with a budget of HUF 10 billion. It intends to be allocated to companies with growth potential and being registered in Hungary, mainly based in Debrecen and Hajdú-Bihar counties.
The Equity Fund will not only focus on traditional industries such as the pharmaceutical or chemical industry, but it will also allow for investment in other industries if the companies meet the relevant financial and EU requirements, and have sufficient innovative and development potential.
The Fund starts operating in October, – with HUF 10 billion, a 12-year term and a 7-year investment period.