The East West Kockázati Tőkealap has fully repaid its investors’ capital one year ahead of its November 2027 closing date, according to reports from Telex. State-backed venture capital programs rarely achieve such milestones before their deadlines. Following this early capital return, all future inflows from the remaining portfolio companies will constitute pure profit for stakeholders, including the state-owned Eximbank Zrt., OTP Bank Nyrt., and Mol Nyrt.
ESDS Edtech Sale and Ministerial Approval
According to verified reports, the capital repayment was driven by major market exits, most notably the sale of ESDS Edtech Kft., a Hungarian digital educational software developer. Italian firm Gruppo Spaggiari Parma acquired the software company in a transaction large enough to trigger foreign investment control rules. On September 1, Minister Kapitány István signed the official state acknowledgment required to approve the acquisition, as detailed by Telex.
Prior to the ESDS Edtech deal, the fund exited the Portuguese digital tax software firm PetaPilot in 2022. That transaction yielded a 55 percent internal rate of return (IRR) for the fund, while the Hungarian entity achieved a 19 percent annual return, according to the source material.
Did You Know?
When the Hungarian-Portuguese venture capital fund was announced in November 2017 by then-külgazdasági és külügyminiszter Szijjártó Péter, the Eximbank defended the investment by arguing that Portugal would serve as a gateway to regions like South America, Africa, and parts of Asia. While market entry into those regions remains unquantified, the fund’s technology exits have successfully returned all initial capital to investors ahead of schedule.
Remaining Portfolio and Projected Returns
Management duties for the fund were handled by Alpac Capital, a Portuguese entity registered and regulated by the Portuguese securities market regulator. Headed by Pedro Vargas David—son of Mário David, a Portuguese politician and close acquaintance of Viktor Orbán—Alpac operates offices in Budapest, Lisbon, and Qatar. Alpac’s portfolio also includes a minority financial stake in the Hungarian exchange-listed company 4iG, which is currently undergoing audits, alongside past high-profile acquisitions like Euronews and a Balkan media portfolio, as reported by Telex.
The fund’s remaining portfolio currently holds three companies: Login Autonom E-learning, TC2, and Biometrid. According to disclosures provided to Telex, investors—including the Hungarian state, Mol, and OTP—can expect annualized returns of 15 to 20 percent following the eventual sale of these final three assets.
Frequently Asked Questions
Who are the primary investors in the East West Kockázati Tőkealap?
The fund’s investors include the state-owned Eximbank Zrt., OTP Bank Nyrt., and Mol Nyrt.
What firm manages the fund’s operations?
The fund management tasks were carried out by Alpac Capital, a regulated Portuguese company led by Pedro Vargas David.
What will happen to funds generated from the remaining portfolio companies?
According to the reports, any money flowing into the fund from the sale of the remaining three companies—Login Autonom E-learning, TC2, and Biometrid—will constitute direct profit for the investors.
How do you view the balance between state-backed development funds and private venture capital returns in Central Europe?
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