Reports 2018

The mood on the German private equity market is good at the beginning of the year. The German Private Equity Barometer rose by 2.4 points to 66.7 balance points in the first quarter of 2018. Both the business situation and business expectations are somewhat better than in the previous quarter. The valuation for the current business situation climbs to 71.2 balance points (+2.1) and for business expectations to 62.1 balance points (+2.5). Like the Business Climate Indicator, most environmental indicators remained very stable at the beginning of the year. The valuations of the amount and quality of the deal flow as well as the exit and funding environment have changed only marginally. Although the fundraising and innovation climate declined slightly in each case, their general upward trend remains intact. While the business climate in the early phase segment declined by 3.3 points to 63.0 balance points in the first quarter of 2018 due to a decline in business expectations, the late phase segment made up for its previous decline at the beginning of the year, increasing by 7.1 points to 70.0 balance points.

The German private equity market takes the momentum of the first quarter with it and reaches a new record level in the business climate in early summer. The German Private Equity Barometer increases by 10.4 points to 77.1 balance points in the second quarter of 2018. Both the business situation and business expectations are at record levels. The indicator for the current business situation rises to 79.6 balance points (+8.4), the indicator for business expectations to 74.5 balance points (+12.4). The business climate in the venture capital market and in the late phase segment both reached new highs. Market sentiment was boosted by the development of demand for equity capital: the quantity and quality of the deal flow of the equity capital providers increased significantly. The indicator for the level of demand thereby exceeds its previous best value from summer 2011 and the quality indicator remains only slightly below its previous high. By contrast, there are signs of a turnaround in the fundraising climate and exit environment. As both indicators continue to fall, they have already moved somewhat away from last year's records.

The German Private Equity Market is taking a step back in the late summer after its previous record high. The business climate index of the German Private Equity Barometer fell by 5.0 points to 72.1 balance points in the third quarter of 2018, but remained at a very high level. The equity investors assess both their business situation and their business expectations slightly lower than in the previous record quarter. The nevertheless very good business climate continues to be supported by a very stable market environment. Equity investors are particularly satisfied with the quantity and quality of their deal flow,  the low depreciation pressure and the extremely positive fundraising and exit climate. The latter two climate indicators consolidated again after a slight downward trend in the second quarter. In the venture capital market, the sentiment continues to soar: the climate indicator climbs by 4.1 points to 76.6 balance points. Valuations of both the current business situation and business expectations exceeded the top values of the previous quarter. By contrast, the business climate in the late-stage segment fell by 12 points to 68.6 balance points. Although it remains very good, it is again clearly below its 80-point record of the previous quarter.