In this work the development of the young Private Equity market in Germany is analysed in order to form the base of comprehensive understanding of the market today. In the last decades, the private equity (PE) market in Germany has witnessed waves of rise and fall. But it surpassed, by the end of 2017, all the records of German PE history. According to Deutsche Beteiligungs (DBAG), the amount of transactions in the mid-sized businesses in the German market dramatically increased and hit €4.4 billion in 2017 which was the highest during the last 15 years.
But in contrast, the competition in the German market has been recently high with a steady number of companies which led to high prices and overvalued companies. PE firms target the mid-sized businesses since they are more likely to accept financial investors than bank loans or credit lines. However, this problem can now be countered with the help of PE in the context of alternative corporate financing. It should be noted that PE business has been a concern of German politics and businesses since the 1960s where the financial system was basically based on banks which is not appropriate for the development of PE industry.
The government intervention was the base to build a stronger PE industry away from bank-based financial systems. Recently, the stock market segment was a key driver for the dynamic development of PE market. The price falls and the collapse of the overheated and overvalued companies were also clearly felt in the PE segment and generated a great deal over scepticism on the capital markets.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 1.1. Problem Description
- 1.2. Scope of Work
- 2. The Private Equity Background: Terms, Data and Structure
- 2.1. Definition and Product Categories of Private Equity
- 2.2. The Structure of Private Equity Business
- 2.3. The Origin and History of Private Equity Market in Germany
- 3. The Private Equity Market in Germany since 1990
- 3.1. The Private Equity Market in Germany from 1990 to 1996
- 3.2. From the Stock Market Hype to the Stock Market Crash
- 3.2.1. Private Equity Record Years in Germany since 1997
- 3.2.2. The Consolidation Phase after the Rapid Growth since 2002
- 3.2.3. The boom after the Consolidation Phase since 2007
- 3.3. Current Situation of German PE Market Compared to the US
- 3.4. Major Players in the German Private Equity Industry
- 4. Opportunities and Challenges of the German Private Equity Market
- 4.1. Future Opportunities
- 4.2. Challenges and Current Influencing Factors
- 5. Outlook and Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to provide a comprehensive analysis of the development of the private equity (PE) market in Germany, focusing on the period since the 1990s. The analysis examines the rise and fall of the market, highlighting key events and structures that have shaped its evolution. The paper also explores the role of major players in the market and identifies both current and future opportunities and challenges for the PE industry in Germany.
- The historical development of the German PE market since the 1990s
- The role of major players in the German PE market
- The opportunities and challenges facing the German PE market
- The influence of external factors, including government policies and financial system structures, on the development of the PE industry
- The comparison of the German PE market to the US market.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1 introduces the problem description, which focuses on the dramatic growth of the German PE market in recent years despite the challenges of competition and high valuations. It also outlines the scope of the work, which will examine the development of the market chronologically from the 1990s until today. Chapter 2 provides general information and definitions about PE, outlining its product categories and the structure of the PE business. Chapter 3 is the main part of the work and presents a chronological account of the development of the German PE market since the 1990s, examining key events and structures of the individual stages, including the market’s growth, consolidation, and boom phases.
Chapter 3 also explores major players in the market. Chapter 4 focuses on current and future opportunities and problems for the German PE market, considering the challenges posed by competition and market saturation.
Schlüsselwörter (Keywords)
This work primarily focuses on the German private equity market, examining its historical development, key players, and current opportunities and challenges. Major themes include the market’s growth, consolidation, and boom phases, as well as the influence of government policies and financial system structures on the industry’s development. The analysis also considers the comparison of the German PE market to its US counterpart.
- Quote paper
- Ayman A. (Author), 2018, The German Private Equity Market. An Analysis of its Development, Munich, GRIN Verlag, https://www.grin.com/document/516602
