Budapest, 27/01/2023 — Leading Hungarian capital fund manager Széchenyi Funds and Kazakh-Singapore venture capital investor Steppe Capital Pte. Ltd. signed a Memorandum of Understanding on the establishment of joint Kazakh-Hungarian capital funds at today's meeting of the Kazakh-Hungarian Intergovernmental Committee.
The private venture equity fund to be set up can generate international investments with a high yield potential.
The parties will have a 50-50% stake in funds starting with USD 10 million each. The fund management will be carried out by the Széchenyi Funds, thus strengthening its international presence.
The stated aim is to simultaneously create maximum profits for their owners and promote the development of the Kazakh and Hungarian economies by exploiting attractive investment and co-investment opportunities in sectors of high importance for both economies, such as technology, energy, agriculture and life sciences.
In line with the strategy, in the next 8 years, the funds will invest in a wide range of companies integrating into the Kazakh and Hungarian economies, from innovative startups to emerging SMEs to more mature, growth-able companies to create synergies between Central Asian and Central European markets.
Up to 50% of the fund's invested amount is planned to be invested in Kazakhstan, high-growth companies with Kazakh ties.
Dénes Jobbágy, Chairman and CEO of Széchenyi Alapkezelő Zrt., said: “Building on the expertise of our investment teams and our existing and growing relationships, our goal is to jointly raise Kazakh and Hungarian business cooperation to a new level„.
Erikzhan Issengaliyev, Chief Investment Officer, Steppe Capital Pte. Ltd. added: “We create this cooperation with Széchenyi Funds with high expectations, because we believe that this will not only maximize the return of our owners, but also promote the growth of our countries' economies by exploiting attractive investment and co-investment opportunities„.
The reason for the joint Kazakh-Hungarian capital fund is scheduled to start operating in the first half of this year.
Steppe Capital is an investment holding company with a diversified private equity portfolio which, focusing on the Republic of Kazakhstan, mainly invests in emerging and surrounding markets. Steppe Capital is constantly looking for opportunities to support the economy, infrastructure and businesses of the Republic of Kazakhstan, either directly or through its affiliated companies, by promoting and investing in private equity and venture capital projects.
Széchenyi Funds is one of the largest and most active investors in the domestic capital market. It manages assets of more than 155 billion forints, including 80+ portfolio companies. In addition to SMEs in a more mature phase, its focus is also financial institutions and large corporations. Start-ups provide “smart money” through domestic incubators and accelerators, as well as funds fund investments. It cooperates closely with the Óbuda University maintained by its owner, the Rudolf Kalman Foundation for Óbuda University, which allows for a high degree of synergy between technical and economic disciplines and practical business. The aim of the Széchenyi Funds is to help the growth and stability of the Hungarian economy in the long run with capital invested in high value-added enterprises.