011_DBAG GB 2000 Innen E - Deutsche Beteiligungs AG

vate equ ty
Private equ
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Private equity market
Private equity market
Private equity mar
Great Britain remains the largest European private equity market by far –
both in respect of newly invested funds (46 percent of the European
total) and portfolio volume at year-end (48 percent of the European
total). Germany is the largest market in continental Europe, with France
ranking second. At year-end 1999, 14 percent of total European private
equity were invested in Germany, whereas France accounted for 9 percent.
In 1999, 13 percent of the new investments in Europe were made
in Germany and 11 percent in France.
More than half the invested capital (53 percent) was used to finance
buyouts. Expansion capital ranked second (30 percent). Venture capital
for start-ups and early-stage financing accounted for 13 percent of the
funds invested. An analysis of the five-year period shows that buyout
financing and venture capital have continued to grow in importance.
In the buyout market, there has been a clear trend towards ever larger
transactions over the last few years.
Private equity: becoming a standard form of financing in Germany
Germany, our home market, has experienced phenomenal development
in recent years. In 1999, the capital available to private equity companies
for investing activities totaled “ 4.6 billion. This is 145 percent more than
the previous year (“ 1.9 billion). The investor structure has seen a distinct
change. In the early 80s, banks were the dominant investors. By the late
90s, private and institutional investors had clearly gained in importance
as sources of capital. The number of market participants is also on the
rise. In 1990, the Bundesverband Deutscher Kapitalbeteiligungsgesellschaft/
German Venture Capital Association e.V. (BVK) listed 63 members. That
number has grown to 162 in 2000. Approximately 200 private equity
companies are sited in Germany. The appeal of the German market is
mirrored by the fact that nearly 50 percent of the available funds come
from international sources.
New sums invested and the portfolio volume reached new record highs
year after year. In 1999, “ 3.2 billion were invested, or 60 percent more
than in 1998 (“ 2.0 billion). The portfolio volume at year-end 1999
climbed to “ 7.9 billion, 42 percent above that of the year before (“ 5.6
billion). Although the final figures for the year 2000 are not yet available,
last year's record is expected to be broken again. In the first six months
of 2000, “ 1.6 billion were placed in new investments. At June 30, 2000,
the total capital invested amounted to “ 8.2 billion.
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