This paper gives an overview of private equity. Functionality of investing firms, possible applications of private equity, and its influence on portfolio-companies is in the focus of interest. The topic is investigated by analysing the German market and describing private equity as a controversial financial instrument. Thereby also reservations are portrayed that exist in the German society as well as in the German “Mittelstand” (small and medium sized businesses). The paper concludes with presenting the author’s individual view on private equity and a positive outlook on development of private equity in Germany.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Contents
- Tables and Graphics
- Tables
- Graphics
- 1) Introduction and background
- 2) Methodology
- 3) Particularities of the German market
- 3.1) Facts and numbers
- 3.2) Economic and social causes
- 4) Structure and refinancing of the market participants
- 5) Characteristics of investment
- 5.1) Share of participation
- 5.2) Form of capital
- 5.3) Life cycle of the target company
- 5.4) Exit
- 6) Intents and actions of private equity firms and their investors
- 7) Decision-relevant factors for target companies
- 8) Discussion: the impact of private equity on target-companies
- 9) Limitations
- 9.1 Restrictions of words and time
- 9.2 Methodical Limitations
- 10) Conclusion
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide a comprehensive overview of private equity (PE) in Germany. It examines the functioning of investment firms, the various applications of private equity, and its impact on portfolio companies. The paper explores the German market, highlighting the controversies surrounding PE and the reservations held by German society and the "Mittelstand" (small and medium-sized businesses). The paper concludes with the author's perspective on PE and its potential development in Germany.
- The functionality of private equity investment firms
- The applications of private equity in various business contexts
- The influence of private equity on portfolio companies
- The German market for private equity, including its challenges and opportunities
- The author's perspective on the future of private equity in Germany
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction and Background: This chapter defines private equity and addresses common misconceptions about the industry, highlighting the author's personal interest and motivation for writing the paper. It also discloses the author's political affiliation and commitment to objectivity.
- Methodology: The chapter discusses the vast literature on private equity and the author's decision to structure the paper as a handbook, providing a comprehensive overview of this dynamic and relatively young sector.
- Particularities of the German Market: This chapter explores the specific features of the German market for private equity, including facts and figures about investment activity, economic and social factors influencing the market, and the challenges and opportunities for PE firms in Germany.
- Structure and Refinancing of the Market Participants: This chapter delves into the structure of the private equity market, examining the different types of players involved, their financing strategies, and the complex relationships between them.
- Characteristics of Investment: This chapter focuses on the specific characteristics of private equity investments, including the share of participation, forms of capital, life cycle of target companies, and exit strategies.
- Intents and Actions of Private Equity Firms and their Investors: This chapter explores the goals and strategies of private equity firms and their investors, examining their decision-making processes and their impact on portfolio companies.
- Decision-Relevant Factors for Target Companies: This chapter examines the factors that target companies consider when evaluating a potential private equity investment, highlighting the implications for their operations and future development.
- Discussion: The Impact of Private Equity on Target Companies: This chapter analyzes the impact of private equity investments on target companies, discussing the potential benefits and drawbacks of PE involvement and its influence on the operations and performance of portfolio companies.
- Limitations: This chapter acknowledges the inherent limitations of the paper, including restrictions related to word count and time constraints, as well as methodological limitations.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this paper are private equity, investment firms, portfolio companies, German market, Mittelstand, economic impact, social impact, and the future development of private equity in Germany.
- Quote paper
- Gerd Rainer Meiners (Author), 2007, Private Equity in Germany, Munich, GRIN Verlag, https://www.grin.com/document/90361
