Abstract:

The Hungarian private equity market reacted quite sensitively to the 2008-2009 financial crisis. Although not in an equal degree and in the same year, but all of the market’s fundraising, investment and exit segment suffered a decline. However, the distrustful economic environment also affected negatively the traditional financial sources, making it more complicated to obtain bank loans. As a result of this moderate credit supply, private equity and venture capital investments became relatively more valuable. This was further strengthened by the appearance and launch of the so-called hybrid funds in 2010. Although the paper focuses on the investment segment of the Hungarian private equity market, as an introduction we also describe briefly Hungary’s macro environment in the recent years. The rest of the paper analyse private equity investments from different aspects.

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