Private Equity & Venture Capital

Private Equity

The financial crisis has fundamentally changed the private equity industry. In the course of the implementation of the AIFM Directive, Germany has, for the first time, subjected alternative investment managers to regulation which goes far beyond provisions relating to portfolio and risk management.

The altered economic, fiscal, and regulatory environment for banks, investors, and private equity managers has resulted in changes to investment structures, the investment rationale and has created a new investment culture.
At the same time, the challenges to implement operational improvements at the level of portfolio companies along with value enhancement strategies have increased.

The management of portfolio companies comprises the internationalisation of business models, the creation and expansion of sales channels(e.g. online trading platforms, franchise concepts), the extension of value creation chains, the implementation of buy and build strategies, the consolidation of competition situations and the strengthening of brands. These activities are even more applicable in the field of growth capital (venture capital), which is currently subjecting entire sectors of industry, such as the retail sector, to far-reaching changes and redesign.

In an investment market characterised by increasing complexity and competition, the right structure and the skill of the advisers in implementing challenging investment strategies, therefore, play – alongside a good feel for the right opportunity – a key role for a successful investment strategy.