PRINT THIS PAGE 2004 Yearbook03/05/2005. Source: Hungarian Venture Capital and Private Equity Association.
The Hungarian Venture Capital and Private Equity Association's 2004 Yearbook reviews developments in 2003 and provides a legal overview of private equity fundraising from Hungarian pension funds. The Hungarian venture capital and private equity industry saw improved investment numbers for 2003 over previous forecasts. The volume of investment exceeded EUR 100 million in an impressive showing despite the general market contraction predicted for 2004. In light of these impressive numbers it is safe to assume that the recession of recent years in both Western Europe and overseas has had less of an influence on Hungary. Hungary ’s GDP growth of 2.9 % in 2003 significantly outperformed the EU average. Other macroeconomic indices ( e. g. industrial production, unemployment rate) have also shown an improving tendency.
Central and Eastern European developments
Along with the dynamic development of the Czech and Polish venture capital and private equity markets, Hungary, despite its sub par 10 million inhabitants, continues to play a pivotal role in the Central and Eastern European venture capital and private equity market. Of the 35 active CEE focused private equity fund managers in the region, 30 have local offices from which they also perform investments outside of Hungary. Beside “traditional” CEE investment targets, there has been an emphasis on sourcing and completing deals in South East Europe as well.
Despite the increasing number of potential portfolio companies and the diverse attention of the investors, similarly to other CEE countries the number transactions has increased in Hungary compared to the previous year. The value of the invested capital by the Hungarian venture capital and private equity industry in 2003 was EUR 120 million, of which two buyouts and two significant development capital investments
determined the market in 2003.
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The Hungarian Venture Capital and Private Eqiuty Association promotes the interest of the venture capital and private equity in Hungary, is dedicated to promoting the conception of the industry, helping the work of its members as well as creating and following in the highest possible professional and ethical standards. For more information visit http://www.hvca.hu
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