CEE sees almost 680% increase in private equity investment: HVCA 18th Annual Conference in Budapest
Joseph Andrew, Global Chairman of Dentons and former Chairman of US Democratic National Committee, delivers keynote address
June 08, 2016 – The Hungarian Private Equity and Venture Capital Association (HVCA)‘s 18th annual conference on Private Equity, Venture Capital and Corporate Finance in Central and Eastern Europe (CEE) convened today in Budapest. Joseph Andrew, Global Chairman of Dentons, the world’s largest law firm, and former Chairman of the Democratic National Committee of the United States (DNC), was its keynote speaker. The HVCA’s annual conference on private equity, venture capital and corporate finance in CEE/SEE brings together the key decision-makers, investors, advisors, and regulators in this major investment discipline.
„The central challenge to global progress and, indeed, prosperity is finding the answer to this basic question: how do we resolve the tensions between globalization and cultural identity?” said Mr. Andrew at the Conference. „The rule of law can help mitigate the tension between globalization and cultural identity by providing the rules of the road for commerce that are predictable, enforceable and adaptable to local cultures and to various forms of government and economic systems.”
According to data from MergerMarket, private equity saw a full-year increase of almost 680% in investment activity in CEE for 2015, compared to 2014, with EUR 14.1 billion invested.
„The CEE/SEE region has seen a recovery in deal value and an upsurge in activity, as more and more international investors visit or return to the region,” said Levente Zsembery, HVCA Chairman and CEO of X-Ventures. „Hungary has been the venue for, or contributed assets to, some of the most significant and highly valued recent regional deals.”
„Hungarian companies are considered investment targets for not only strategic but also financial investors. Our latest M&A Barometer results show that the share of financial investors varied between 25-48% of total deal volume throughout the past six years – one of the highest ratios in the CEE/SEE region. A large share was driven by JEREMIE investments, but we also see regional and global PE funds investing in Hungarian businesses,” observed Zoltán Dömötör, Executive Director at EY.
„Private equity presents a wider range of alternatives to developing a business than merely organic growth or one trade buyer purchasing another, and can offer a range of investment financing that suits a business’s various stages of development to take it to the next level,” added Hugh Owen, Partner at Allen & Overy, another main sponsor and supporter of the Conference. „Private equity continually keeps the pressure up on the competitive landscape, forcing strategic players to be more nimble, creative and competitive on pricing.“
„The recent upsurge in private equity investment in the region, with almost 680% more invested in 2015 than 2014, according to MergerMarket, sends a very positive signal for our industry and its contribution to regional development,” added Béla Lendvai-Lintner, Partner at ARX Equity Partners. „As asset prices in Western markets continue to be challenging, the CEE/SEE region offers some excellent companies at relatively favourable valuations.“
For further information, please contact: Capital Communications, Szilvia Hegyi, Phone: +36 1 266 0199. Fax: 36 1 318 0613. E-mail: Hegyisz@capital.hu.
About the Hungarian Venture Capital and Private Equity Association (HVCA)
The Hungarian Venture Capital and Private Equity Association (HVCA) represents the interests of the private equity and venture capital industry in Hungary by supporting its members and promoting adherence to the highest possible professional and ethical standards. The HVCA was established in 1991. Currently, the HVCA is known as one of the most dynamic and active professional organisations in the CEE region. The HVCA represents virtually every major player of the private equity and venture capital industry in Hungary and is dedicated to promoting the private equity and venture capital industry for the benefit of funds, entrepreneurs, private equity professionals and the economy as a whole.