"In the first six months of 2018, investment companies in Germany invested a total of €5.3 billion. Following the record year of 2017, 2018 is another year of strong investment in the German private equity market," said Ulrike Hinrichs, Managing Director of the The German Private Equity and Venture Capital Associationn (BVK), commenting on today's preliminary market figures. "All market segments, i.e. venture capital, minority investments and buy-outs, made a significant contribution to the positive investment result." Almost 600 companies received equity capital in the first six months of the year.
Continuing upward trend in venture capital
In 2016 and 2017, €1.07 billion and €1.14 billion were invested in venture capital by investment companies in Germany, the highest amount since 2008. With €660 million so far, the current year is on the best way to surpass this level. By contrast, €493 million and €646 million respectively were invested in the two half years of 2017. "Since mid-2013, we have not only seen a continuous increase in semi-annual venture capital investments, but also a doubling to the current level," explains Hinrichs. "The German venture capital market is currently quite dynamic. This is great news for the German start-up scene, as we currently expect to be able to exceed the previous year's investments. But there is still a need to catch up on an international comparison."
Buy-outs below last year's level
At € 3.6 billion, buy-out investments did not reach the level of the two half year-results 2017 (H1: € 4.7 billion, H2: € 3.9 billion). "This was hardly surprising, as both half-years were exceptionally strong investment years," Hinrichs continued. Some very large transactions were also announced or concluded again. Examples include the acquisitions of Techem, SUSE and HSH Nordbank. A total of 75 buy-outs were recorded in the first six months, more than in the first half of the previous year (65) and only slightly less than in the second half of 2017 (85). "Overall, we see fewer major takeovers this year than at the same time last year and it remains to be seen what will happen before the end of the year. However, business in small and medium-sized transactions remains brisk."
On the other hand, there was an increase in investments in minority interests (growth, replacement and turnaround financings), most of which are focused on medium-sized companies. These added up to € 1.0 billion and thus exceeded both half-years in 2017 (H1: € 0.98 billion, H2: € 0.83 billion). Once again, in addition to a large number of growth financings for small and medium-sized enterprises, there were a few outstanding individual investments in established medium-sized companies and more mature young companies.
Highlights of the semi-annual figures in the video
Ulrike Hinrichs, Managing Director of BVK, presents the highlights of the 2018 half-year results in a video: