During the past 20 years, private equity has become an essential factor in providing equity financing for German start-ups and more developed mid-sized companies. However, a specific private equity statute could enable Germany to become an even more lucrative investment location for domestic and foreign private equity funds.
Private equity businesses – that is, venture capital and private equity funds – and most of their international investors are increasingly sceptical about investing in Germany, despite some sectors, such as technology or under-valued mid-sized companies, having the potential to be of significant commercial interest.
