HOW DOES FUND MANAGEMENT WORK?
In Hungary, a typical way of financing companies is to provide bank loans to them. – Due to the fact that banks demand collateral or other securities, – for many enterprises it is difficult to access bank loans, or simply they are not available in such quantities that would suit their growth potential.
In contrast with a bank, the Fund Management Company handles investment with the interests of owners in mind, and its goal is to enhance the value of the enterprise, rather than the continuous monitoring of the credit recovery. With this in mind, the Fund Management Company provides industry analysis, financial experience and a network of relationships to the enterprise under its ownership. Thanks to capital investment and strategic support, the growth rate of the enterprises under ownership is facilitated, their profits increase, and their long term profit prospects improve. As a result the Fund’s shareholder value gets appreciated.
The investments of private equities carried out by the Fund Management Company can be categorised as forms of investments that involve above average risk.
THE ACTIVITIES OF MINERVA CAPITAL FUND MANAGEMENT
The goal of MINERVA Capital Fund Management is to provide capital to the enterprises by exploiting the Central European growth potential, and also in the long term to ensure above average returns to its investors. Accordingly, the Fund Management Company’s employees, who possess decades of experience in the field of investment and M&A, typically select the best investment opportunities for their partners by analysing business plans and holding personal meetings. Besides capital injection, the Fund Management Company provides professional support to target companies, furthermore, its experts take part in the strategic management of these companies.