MOBILITY HAS ALWAYS BEEN THE ENGINE OF HUMAN DEVELOPMENT.
THE AUTOMOTIVE INDUSTRY IS MOVING AT THE „SPEED OF LIGHT” TODAY, AND OUR INVESTMENTS ARE FOCUSED ON THIS AREA
Investment phylosophy
We want to partner with companies that believe in and want to take action for their development, know their market and are sure of their future and their place in the mobility market. In return, we provide the financing and all the industry and professional knowledge we have accumulated so far and actively seek to exploit synergies in any related field for our partners.
Innova-X
Mobility is the engine of human development; it can take anything and anyone in space and time, where the sky is the limit.
The invention of the wheel, with the means of transport built upon it, and its application and evolution in newer and newer structures, provides an unimaginable range of applications and areas of use today. Closely related to this is mobility, i.e. the transport and movement of goods, animals and people.
We believe that the automotive industry, which is the biggest driver of mobility and which has already made incredible progress and is still developing at light speed, offers many more excellent opportunities for development, which are worth developing and investing in. Mobility is the part of the future!
The mission of Innova-X Investment Fund Management Ltd. is to ensure the development of small and medium-sized enterprises in the automotive industry in Hungary and the surrounding Central and Eastern European countries by increasing their capital strength, investing in them and exploiting their vertical and horizontal synergies in the value chain they form, and thereby securing their development and their investment objectives.
Investment focus
Industry focus
We focus on the market of MOBILITY, including the automotive industry (road, rail, waterborne and aircraft), and the manufacturing and service companies operating in this sector, and on exploiting the synergies between their activities, specifically in the following areas:
- companies active in the automotive sector and related supply, heavy and mechanical engineering industries
- suppliers to the value chain of these sectors,
- providing intermediation and servicing activities (e.g. infrastructure provision) to these sectors, or
- undertakings in other sectors which, as a result of the investment, may become an operator, supplier, intermediate operator or service provider in the automotive industry and related heavy industry and engineering suppliers or undertakings using developments in the automotive industry.
Regional focus
We invest in small and medium-sized enterprises that are active in production/service activities in Hungary or in the surrounding Central and Eastern European countries, irrespective of their target markets.
Target company focus
The ideal investment targets are companies active in the automotive industry or a related field
- domestic and regional companies,
- which have significant industry experience
- have stable customer and supplier relationships; and
- have added value based on manufacturing/service experience or own innovation
Goal focus
We provide funding opportunities to businesses that need
- for the further development of their business
- for accelerating their market growth
- for access to export markets
- for making a successful generational shift
and they need CAPITAL FUNDING
.
WHAT DOES INNOVA-X INVESTMENT FUND MANAGEMENT ZRT. FINANCING SOLUTIONS PROVIDE FOR?
Buy out
-
For successful, profitable businesses, where the owner wishes to sell all of his shares and is willing to work closely with the investor during the transition, or to remain an active member of his company after the partial sale, Innova-X can also provide an excellent alternative to continue to develop and grow the business.
EXPANDING BUSINESS ACTIVITIES, MARKET EXPANSION, ACCELERATING THE EXPANSION
For successful, profitable businesses, where the market position and product portfolio are already in place, customer and supplier relationships are stable, but a source of finance is needed to “leapfrog” or to enter new markets or expand geographically. Innova-X Zrt. offers an excellent capital financing background for stepping onto this “acceleration-track” move.
Generation
shift
In the case of a well-established, profitable business, where it is not possible to pass on the shares and continue the business, Innova-X Zrt. provides an excellent opportunity to bridge this situation.
WHO BENEFITS FROM THIS TYPE OF FINANCING AND WHY (EQUITY VS. DEBT)
OWNER VS. CREDITOR
POSITION
While the Investor views the financed company like owner through its provided funds, interested in its dynamic growth, stability of operations and continuous improvement of profitability, the Bank views the financed company as a source of income and a debtor.
FUNDING
PERIOD
Similar conditions are available in this respect, which means an average of 3-8 years, whether for an investment loan or a capital investment. The longer the term, the more advantageous the capital investment.
DURABILITY, "STRENGTH"
OF FUNDING
This is where the difference between the two forms of financing is significant. The funding provided by the Bank is repaid at a predetermined rate, with interest, on a continuous basis from the cash flow generated in the better case, irrespective of the performance of the business, i.e. there is a continuous withdrawal of funds. The capital provided by the Investor is available in its entirety, with its full yield, throughout the “life” of the investment and remains in the business to ensure continued stable growth and development until the end of the investment period, when the Investor sells the share in the business he has acquired. This is called an Exit. The investor realizes the return on his investment in the selling price, which is not repaid by the investee company.
THE "ADDED VALUE" OF COOPERATION
By default, neither the Bank nor the Investor intervenes in the day-to-day operations of the company, but only “protects” the security of its investment within a contractual framework. Beyond this, however, only the Investor has an interest in the growth of the company, in order to maximize the return on his investment, which he can achieve by putting at the disposal of the company all his professional and industrial experience, his network of contacts and by operating and exploiting synergies between the companies in his portfolio. This added value is called “smart money”.
WHAT FORM CAN THE TARGET COMPANY BE FINANCED?
•
Raising capital
•
Full or partial buy-out
•
Combination of the above two options
•
The above three options plus additional funding in the form of a loan
Investment Portfolio
