An overview of German investors in private equity

by Matthew Robson

  • 20 Apr 2010
  • PE

Preqin’s comprehensive Investor Intelligence database shows that 105 active private equity investors are based in Germany. Of the total, the most common investor types are fund of funds managers (25%), insurance companies (18%), and banks (14%). Of the less represented LPs, government agencies and investment companies make up 2% each. Given this investor composition, it follows that three of the top five investors by the value of their private equity allocations are fund of funds managers. A bank and an asset manager complete the top five.

Excluding fund of funds managers, 41% of German LPs have a private equity allocation of between 1% and 4.9% of assets, and 27% have an allocation of 5% or greater. German private equity investors are predominantly medium to large institutions, with three-quarters holding assets of more than EUR 1 billion and 26% holding assets of more than EUR 20 billion.

 These investors predominantly look to Europe when making new commitments to private equity: 90% invest in this region, compared to 70% in North America, and 62% in Asia and the Rest of World.  With respect to fund type, the majority of German LPs have buyout and venture funds as a preference (73% and 75%, respectively). Funds of funds (33%), secondaries (31%), and cleantech funds (28%) are also popular fund categories for these investors.

Munich is the city with the highest concentration of German LPs in private equity, at 21%. Hamburg has a concentration of 15%, while Frankfurt houses 7% of German LPs. Further details, including contact information for German LPs, can be easily obtained through Preqin’s Investor Intelligence service.

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