Record 290 Central and Eastern European companies receive private equity and venture capital investment in 2014
A robust year for investment, divestment and fundraising as CEE activity strengthens
Budapest – 3 September, 2015 – A record 290 companies in Central and Eastern Europe received private equity and venture capital investment in 2014 as capital invested by funds across the region increased by 66% on previous year to €1.3bn, according to new data released today by the European Private Equity and Venture Capital Association (EVCA). Hungary was the fourth largest investment market in CEE in 2014, accounting for 13% of the regional total, Investment values in increased to €170m.
A record 290 companies in Central and Eastern Europe received private equity and venture capital investment in 2014 as capital invested by funds across the region increased by 66% on previous year to €1.3bn, according to new data released today by the European Private Equity and Venture Capital Association (EVCA). At the same time, fundraising increased in 2014 more than threefold to €1.5 billion and exits stood at €1.3 billion (measured at original cost), up 32% on previous year. The figures come from the Central and Eastern Europe (CEE) Statistics 2014 report, shows a broad improvement in private equity fundraising, investment and divestment activity in CEE, with rising participation from domestic and regional investment firms, as well as increased interest from pan-European and global private equity investment groups.
“Private equity and venture capital investment activity in CEE more than lived up to expectations in 2014. A record number of companies received investment in 2014, driven by strong venture capital investment across the region. Larger investments also prospered as demonstrated by the sharp rise in buyout activity and the first €1bn enterprise value investment in CEE since 2009,” EVCA Chief Executive Dörte Höppner said.
The significant findings from the CEE Statistics 2014 report include:
- Buyout equity investments increased 120% to €935m in 2014.
- Total private equity and venture capital fundraising increased more than three-fold to €1.5bn, the highest total since 2008 and the fourth best result ever.
- Divestments increased by 32% in 2014 to €1.3bn (at historical investment cost), the second-highest level recorded in the region.
Records in private equity and venture capital investment activities in Hungary
Hungary was the fourth largest investment market in CEE in 2014, accounting for 13% of the regional total. Investment values in Hungary increased three-fold from 2013 to €170m. Most of the year-on-year growth in company numbers across the region came in Hungary, where 73 companies received investment in 2014 – an increase of 32 companies on the previous year. Hungarian private equity investment as a percentage of Hungary’s GDP increased significantly to 0.164% in 2014 from 0.056% in 2013, exceeded the 0.104% CEE average.
At the number of companies receiving venture capital investment in CEE in 2014, Hungary also took the lead with 66 companies financed comprising 31% of the total number of companies across the region. “The figure parallels the increase in venture capital investment by value, making Hungary the leading country in the region for venture capital both in value and by number of companies in 2014.” – Levente Zsembery, Chairman of HVCA told. Hungary’s venture investment value grew most strongly with a 92% year-on-year increase from € 17m to €32m in 2014. Hungary remained the leading CEE destination for venture capital investments in 2014 with €32m accounting for 33% of the region’s total venture investment value.
Hungary was third largest market for exits in the region accounting for 13% of the regional exit total.
Ibolya Pintér, HVCA, tel: +36 1 475 0924, email: firstname.lastname@example.org
Szilvia Morvay, Goodwill Communications, tel: +36 70 941 6908, email: email@example.com
The Hungarian Venture Capital and Private Equity Association was established in 1991. It represents the interests of the venture capital and private equity sector in Hungary.
It is committed to promoting the concepts underlying the sector, assisting the work of its members, the elaboration of the highest professional and ethical standards and the monitoring of compliance with these.
The Association, functioning as the national professional organization of the venture capital and private equity sector, has undergone substantial development since its founding, as the association now has 78 members compared to the five at inception. Full members effect investments in listed or unlisted companies as a core activity. Associate members include firms which do not conduct venture capital and private equity investments as a core activity, but possess important know-how and experience related to the sector and provide numerous essential services for venture capital and private equity companies, such as legal advice, accounting services or M&A advisory services. (to learn more about HVCA please visit the following website: http://www.hvca.hu/hu/)