HBOR: Private Equity Investments are the Basis for Innovations and Sustainable Economic Development

The conference „Trends and Perspectives of Private Equity Investments“, organised by the Croatian Bank for Reconstruction and Development (HBOR), gathered the representatives of private investors, regulators and international and local experts. The goal of the conference was to emphasize the importance of private equity investments for the development of the economy and highlight the potential of synergy between profitability and corporate social responsibility.

 

President of the Management Board of HBOR Hrvoje Čuvalo highlighted that private equity investments were crucial for the development of innovations and the sustainable economy. „In the last five years, five private equity funds have been launched through the initiatives of HBOR and the EIF with the total capital of about EUR 300 million, in which HBOR invested or committed to invest EUR 50 million. This resulted in six-fold multiplier on our investment, thus proving the success of our approach. We will continue this practice in the future as well“, said Čuvalo.

 

The conference presented the data on significant „market gap“ in investments in an amount exceeding EUR 100 million per year. In order to reduce that gap, HBOR announced the launch of new initiatives, including two „private equity“ funds under the CROGIP II programme that will direct part of investments to green and climate projects.

 

Special attention is paid to the issue of compliance of socially eligible investments with the interest of private investors. Examples of the European funds investing in projects such as affordable housing were presented, proving that socially responsible investments can also be financially viable.

 

„HBOR perceives its role not only in financing through funds, but also in educating potential investors. We will organise conferences and round tables to strengthen the private sector in Croatia and encourage its engagement in the field of private equity“, said Čuvalo.

 

President of the Croatian Private Equity and Venture Capital Association (CVCA) Mirna Marović emphasized the importance of involving private investors in achieving sustainable growth of the private equity market, while the Director of Directorate for Companies in the Ministry of Finance Leon Žulj highlighted the need for strengthening the domestic capital market through digitalisation and the development of new investment instruments.

 

HBOR, as the key player in the development of the Croatian capital market, continues to create a framework for supporting innovative and promising companies, thus contributing to the strengthening of economic resilience and promoting the sustainable growth.