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venture capital activities in Germany in the 2nd Quarter of 2009

high liquidity and few investment opportunities

Many investment companies have in recent months, the value of their portfolios but can significantly increase the yields achieved but remained far behind the back what was once the private equity backers promised. This increases the pressure on the industry, which has around 600 billion dollars of committed capital available to use the money wisely. Either have already received funds and fees are returned, or the investment periods of Private Equity Funds be extended any further charges. As will pay considerable pressure from the investors. because bad investments and quick shots on acquisitions would see no one. Many private equity managers would hanging up your researcher next fund fear anyway, do not get paid more by investors. The death of private equity firms will indeed been slow, it may well have 30 to 40 percent of the houses that exist today will disappear (especially the younger ones) from the market.

According to information obtained SCM-European Private Equity Fund 2009, annual interest rate of 14.4 percent, American funds of 12.3 percent. The British research firm Prequin comes to similar values, limits, however, that has been made in the stock markets better results (Index: S & P 500: plus 26.5 percent). However, many private equity companies, the valuations of their companies had written off dramatically last year and 2009, only restrained written back. You want to avoid the embarrassment of 2010 may have to adjust again.

It was kept by private equity fund companies have responded quickly to the crisis through lack of funding as in many listed companies, which is why these companies had been partly strong operating profit growth. This increases the chance that the opinions of private equity funds to increase significantly. "The latest data confirm that private equity returns are still recovering at high speed," writes Paresys Etienne, head of market research Prequin. What yield a private equity fund for its investors ultimately made, can be calculated only after sale of all companies included.
The industry will deal with new Acquisitions and disposals it difficult for the foreseeable future. While there are by now a reasonably functioning credit market, are also financed new transactions only very selectively. Only companies with secure cash flow can be acquired at current cycle company dares to put a little hand.


source (s): Frankfurter Allgemeine Zeitung, SCM, Prequin