Nyíregyháza City Capital Fund

MFB Invest Zrt. has launched a thematic enterprise development fund, the City Capital Fund, in Nyíregyháza. The Fund is managed by FOCUS-VENTURES Capital Fund Management Ltd., a fund manager 100% owned by MFB Invest. The Municipality of Nyíregyháza and the Nyíregyháza Industrial Park Nonprofit Ltd., which is 100% owned by the Municipality, have a significant role in the operation of the capital fund. The aim of the Fund is to provide local enterprises with capital injections for the implementation of promising development and investment opportunities that promote the development of the city, Szabolcs-Szatmár-Bereg County, as well as the region.

Duration of the Fund

12-year maturity with a 7-year investment period

Duration of the investment

  • Investment period: until 31 December 2026
  • The term of a given investment is planned to be 5 years, flexibly adapting to the business plan of the given company.
  • Exits by 31 December 2031 at the latest
  • There is no preferred exit form, some possible exit routes are conceivable to maximize the income (e.g. sale to professional or financial investors, IPO, repurchase)

Size of the capital fund

HUF 5 billion budget

Planned investment sizes

The planned average investment size is HUF 300 million

Beneficiaries

  • Having its registered headquarter in Hungary, mainly in Nyíregyháza and Szabolcs-Szatmár-Bereg counties; or being EEA-based with branches in Hungary, mainly in Nyíregyháza and Szabolcs-Szatmár-Bereg counties.
  • Mainly a limited liability company, ie. non-startup stage, capable of development with growth potential; or companies operating in the form of a joint stock company, the purpose of which is to achieve profitable development, are eligible for capital investment under the Fund’s investment policy and fully meet the conditions of at least one of the investment rights.
  • The target company undertakes to implement the project financed by the Fund in Hungary.

Industry focus

A company can apply from any industry sector if it meets the funding and relevant EU requirements, but in particular:

  • manufacturing industry; within the manufacturing industry, including but not limited to the manufacture of basic metals, the manufacture of road vehicles, the manufacture of computer and electronic products;
  • information and communication technology;
  • food industry;
  • sustainability: energy, waste management, technological and business solutions related to the water value chain are the focus of the City Fund.

How to make a decision

The Fund’s investments, exits and commitments to the target company are decided by the CEO of FOCUS VENTURES up to a value limit of HUF 50 million on the recommendation of the three-member Investment Committee. The Board of Directors of the Fund shall make its decision in cases reaching the value limit of HUF 50 million or exceeding it. The two members of the Investment Committee are appointed by the Municipality of Nyíregyháza, the decision on the appointment of the third member belongs to the Investor.

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