Annual Report 2002 (pdf, 1319K) - WestLB

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| Sabine Bürgel Risk Management
Risk management is the diplomacy of the banking business. A quick mental grasp, tactical
skills, powers of persuasion and an ability to assert yourself are the skills you need to do
a good job which primarily takes effect in the background. This benefits WestLB’s clients
and owners alike. Today and in the future. MYBANK
COMPREHENSIVE RANGE OF EQUITY PRODUCTS
Equity Capital Mezzanine Capital
Venture Capital Equity Mezzanine
Incubator/Seed capital Atypical silent partnership
Bridge capital Participation certificate
Private Equity
Growth financing
Management buy-out (MBO),
Management buy-in (MBI)
Employee profit sharing
Public Equity Debt Mezzanine
Amtlicher Markt Silent partnership
Geregelter Markt Subordinated loan/junior debt
Freiverkehr Shareholder loan
International IPO Loan with profit participation
Convertible bond
Warrant bond
In addition to an equity capital investment of
€ 1.8 billion, € 3.0 billion was raised in the form
of bank loans and mezzanine capital to finance
the acquisition and to restructure Legrand’s
debt.
Seizing Future Opportunities
The German private equity market, in particular,
will continue to enjoy above-average growth
potential, with the focus on larger private equity
financing and buy-outs (e.g. in connection with
company succession plans, LBOs, MBOs and
MBIs). The favourable market outlook, which is
already being reflected in growing demand for
mezzanine finance, is due to a number of factors:
the low equity capital base still plaguing many
medium-sized companies, the continuing
uncertainty on the stock markets and resulting
difficulty of raising capital and the growing
number of spin-offs as corporate groups refocus
their activities.
The equity investment business, which we have
concentrated in the Equity Investments business
group, is a core business of the Bank. We will
seek to exploit the major opportunities afforded
by the equity investment market with the help
of our professional product range and markedly
expand our activities, above all in the private
equity field. In doing so, we will rely on the
industry expertise we have built up through our
many years of experience in the market and our
strategic partnerships.