The purpose of City Funds managed by FOCUS VENTURES Capital Fund Management Ltd. is to finance companies that form the backbone of the economic operation in major Hungarian cities and in their agglomeration. The Fund provides local businesses with capital grants for the implementation of promising development and investment opportunities. The Funds are managed by FOCUS VENTURES Capital Fund Management Ltd. that is owned 100% by MFB Invest. The investor of the Fund is MFB Invest Zrt.
TERM OF THE THE FUND
12-year term with 7-year investment period
DURATION OF INVESTMENT
- Investment period: until December 31, 2027
- The term of a given investment is planned to be 5 years, flexibly adapting to the business plan of the given company.
- Exits are due by 31 December 2032 at the latest
- There is no preferred form of exit. All possible exit routes are conceivable to maximize returns (e.g., sale to professional or financial investors, IPO, repurchase).
THE SIZE OF THE FUND
A total of HUF 5 Billion
PLANNED SIZE OF INVESTMENT
The average planned investment size is HUF 300 million
WHAT BUSINESSES IS IT RECOMMENDED FOR?
- companies and small businesses resident in Hungary, primarily in Nyíregyháza and Szabolcs-Szatmár-Bereg county, or headquartered in the EEA with branches in Hungary, primarily in Nyíregyháza and Szabolcs-Szatmár-Bereg county
- businesses in growth phase, i.e. not start-ups, that are capable of development with a potential to grow, operating in the form of limited liabilities or joint stock companies, with a declared goal of implementing profitable development ideas, eligible for equity investment under the Fund’s investment policy and fully meet the conditions of at least one of the investment rights.
- as target companies, undertake to implement the Fund financed project in Hungary
SECTOR FOCUS
Applications are awaited from any industrial sector, provided that companies meet the funding requirements and the relevant EU requirements. Our focus areas in particular are:
- pharmaceutical industry;
- information and communication technology;
- food industry;
- chemical industry;
- retail and mobility: technological, manufacturing (automotive, mechanical), infrastructure and business solutions, consumer services, including related fintech solutions, directly or indirectly related to the physical and virtual movement of people, goods;
- sustainability: energy, waste management, technological and business solutions related to the water value chain are at the center of interest of City Fund.
METHOD OF DECISION
Up to the value limit of HUF 50 million the Fund’s investments, exits and commitments to the target companies are decided by the CEO of FOCUS VENTURES on the recommendation of the three-member Investment Committee. In cases of reaching or exceeding the value limit of HUF 50 million decisions are made by the Board of Directors. Two members of the Investment Committee are appointed by the Municipality of Nyíregyháza, the appointment of the third member is the right of the investor.
