HUNGARIAN EQUITY PARTNERS

Location:

Hungary

Project number:

2740

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

15 Oct 1996

Status:

Complete

PSD disclosed:

12 Nov 1998

Project Description

An increase of US$ 1.5 million in the capital commitment to Hungarian Equity Partners, L.P. (the Fund), bringing the Bank's total commitment to US$ 10 million, and the establishment of a US$ 10 million co-investment framework for direct co-investment opportunities offered to the EBRD by the Fund.
The project aims to mobilise private sector funds to make equity and equity-related investments primarily in private medium-sized Hungarian companies. These will fund the creation, modernisation and/or working capital requirements of the portfolio company, with the objective of achieving long-term capital growth.

Transition Impact

The project will contribute to the development of the private sector and economic growth in Hungary by mobilising private sector equity funding for investment in companies with the greatest potential to compete and grow in a free market economy. It will also bring international financial and management expertise to local entrepreneurs.

The Client

Hungarian Equity Partners, L.P., a US$ 60 million private equity fund, which invests in equity and equity-related securities of private medium-sized Hungarian companies to create, modernise and/or to provide working capital requirements for the portfolio companies. The Fund is sponsored by the Hungarian American Enterprise Fund and managed by MAVA Kft.

EBRD Finance

Proposed EBRD financing consists of:
  • an increase of US$ 1.5 million (ECU 1.2 million) to an existing equity investment, bringing the total EBRD finance provided to US$ 10 million (ECU 8.3 million).
  • an additional co-investment framework of US$ 10 million (ECU 8.3 million).

Project Cost

The total fund size is US$ 60 million (ECU 50 million).

Environmental Impact

The Fund will follow the EBRD’s Environmental Procedures for Private Equity Funds. In implementing these procedures, the Fund will assess potential environmental issues associated with its investments, which are required to comply, at a minimum, with national and local health, safety and environmental regulations and standards and public consultation/information requirements. The Fund will submit an annual environmental report on its activities to the EBRD.

Technical Cooperation

None

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.