This year has so far proven rather turbulent for Europe as a whole, with the continent currently recovering from the Greek debt crisis earlier in the summer. Many will now unexpectedly be keeping a close eye on Germany’s economy too, following the news of Volkswagen’s emission scandal. A major loss in sales could spell danger for Europe’s largest economy, despite often being seen as a responsible and stable player in global economics. This blog will take a closer look at German private equity, highlighting some of the largest players and their investment preferences.
According to Preqin’s Fund Manager Profiles database, Germany has 294 active private equity firms. Of these, 51% employ venture capital as a primary strategy, with the strategy accounting for 18% of the total €29bn raised by Germany-based fund managers over the last decade. HV Holtzbrinck Ventures Adviser is the largest Germany-based manager raising venture capital funds, based on aggregate capital raised over the last decade. The firm, located in Munich, focuses on early stage investments across the communications, digital media, internet and media sectors.
Fund managers that focus primarily on buyout make up 22% of Germany-based fund managers and have accumulated a total of €16bn for funds closed in the last decade. The largest buyout firm by capital raised over the last decade is Deutsche Beteiligungs, a Frankfurt-based firm that focuses on investing in Austria, Germany and Switzerland across a range of industries.
Of the largest fund managers in Germany, ranked by capital raised over the last 10 years, three are based in Munich, an important city for European private equity. As the above table shows, Munich is also home to the most active fund managers in the country, ahead of the German financial hub of Frankfurt, where 41 fund managers have raised almost €7bn in capital over the last decade.
Preqin data shows that Germany-based fund managers prefer to invest domestically. Of the 294 active fund managers in the country, almost 75% focus exclusively on Europe, often with a more specific focus on Western Europe. Within this group, 78 fund managers focus solely on investing in Germany.
Preqin’s most recent factsheet examines the German private equity landscape in further detail, providing the latest statistics for German fundraising and deals, as well as details of the largest transactions of 2015 YTD.