City Funds were launched by MFB Invest Zrt. in the fall of 2019 as a private capital fund for thematic business development projects. Its goal has been financing the businesses providing the basis of major Hungarian cities’ economic operations. From City Funds, local entrepreneurs can receive capital support to implement promising development and investment opportunities.
The Funds are managed by FOCUS VENTURES Capital Fund Management Ltd. that is owned by MFB Invest, part of MFB (Hungarian Development Bank) Group. The first City Fund started operating in October 2019. FOCUS VENTURES Capital Fund Management Ltd. is owned 100% by MFB invest. FOCUS VENTURES performs the administrative tasks related to the fund, ensures compliance with the support rules, and monitors the implemented projects up to the “withdrawal”. Success of the fund’s operations is always provided and ensured by local consultants with local knowledge, through the search for projects.
In their activities for economic development, local governments are considered as strategic partners by MFB Invest and its owner, MFB Zrt. Over the past decades, good co-operation has traditionally been formed in this field, and on many occasions MFB has been able to provide a reliable background for settlement development ideas. With the creation of City Funds, this cooperation has reached an improved level, since MFB Group is not just able to work with major cities’ local governments for priority goals, but together we can also lay the foundations for long-term solutions, influencing the future of a given region. The Funds also differ from traditional financing partnerships in that it can simultaneously help a city’s dedicated businesses and at the same time contribute to the development achievable throughout the city, or even improve the quality of life.