Private Equity constitutes the third pillar of our venture. Our goal with this relatively new investment segment is to enhance overall firm-wide performance. We are well aware of the risks associated with investing in Private Equity. For instance, mitigating related liquidity issues can be cumbersome; therefore, allocations to this segment are considerably lower than to the first two pillars. Within this mandate, our target sectors are, for the time being, tourism and agriculture. However, as we constantly monitor investment opportunities, we may add new sectors going forward.

This segment follows the typical venture capitalist investment scheme, in that we may buy shares in startups or emerging/evolving companies with excellent growth potential and solid management but insufficient funds to finance their rapid expansion. Beyond this typical role, we continuously monitor the company’s operations by delegating members to management, and we may even engage in infrastructure development within the target firm. Currently, the Private Equity portfolio consists of investments in Hungary and Germany.

Our flagship, best-performing startup in the portfolio is a sailing boat charter company at Lake Balaton, the largest freshwater lake in continental Europe. Our vision is that the Balaton area, especially tourism, will experience stellar growth, contributing to the profitability of our stakes in the region.

In Germany, we hold shares in an office rental company that owns and rents office spaces on a short-term basis. This company is headquartered in Ottobrunn, located in the metropolitan area of Munich, approximately five kilometres from the Bavarian capital. The region is considered one of the hottest real estate markets in the world.

Our long-term view is that agriculture will become a leading strategic sector in a decade or two. This outlook aligns with our investments in farmlands in Western Hungary. We aim to increase our presence in this sector by purchasing additional farmlands and investing in companies operating in agriculture.

Another crown jewel of the Hungarian portfolio is a twenty-five per cent stake in a property management company based in Budapest. This company aims to buy underpriced apartments in Budapest and, after renovation, rent them out for the long term.