Positive sentiment on the private equity market

Frankfurt/Main (ots) -

- German Private Equity Barometer reaches three-year high
- Early- and late-stage financiers optimistic for 2015
- Fundraising climate better than ever

After a brief lull in the third quarter, the business climate
index of the German Private Equity Barometer once more gathered pace
in the fourth quarter of 2014, rising by 9.6 points to 57.4 balance
points. Thus, the sentiment among German private equity investors hit
a three-year high at the end of the year. Assessments improved for
both the current business situation and business expectations in the
final quarter (+5.5 to 53.6 balance points and +13.7 to 61.2 balance
points). This optimism is supported in particular by the fundraising
opportunities that are considered better than ever, as well as a
continued good environment for exits.

The business climate has recently improved in both the early and
late-stage segments of the private equity market. In late-stage
financing, business expectations are the driving factor behind the
improved sentiment. According to the private equity companies'
assessments, their current business situation remains virtually
unchanged. In all, the year drew to a satisfactory close with a
business climate of 57.8 balance points (+14.3 points). In the
early-stage segment the sentiment indicator at the end of 2014 rose
to 56.8 balance points (+12.9 points), which is the second-highest
value since it was first published in 2003. The business situation
and business expectations are considered to be equally more
optimistic. The early-stage financiers are also experiencing a
tailwind as a result of the continued high demand for venture
capital.

"The sentiment among equity capital investors has increased and
the early-stage financiers in particular are expressing greater
satisfaction," says Dr Jörg Zeuner, Chief Economist at KfW Group,
summarising 2014. Dr Zeuner is confident of the continued
availability of venture capital and emphasises its importance for
young, innovative technology companies: "Venture capital is essential
for survival as high start-up losses or forced growth can only be
recovered through equity. The supply of venture capital is therefore
a key factor for Germany as a technology location."

Ulrike Hinrichs, Managing Director of the German Private Equity
and Venture Capital Association (BVK) added: "The far-reaching
upswing in sentiment at the end of the year across the segments
illustrates the stability of the equity market. This is also
emphasised by our market statistic, which indicates a considerable
increase in investment compared with the previous year. In light of
the optimistic expectations of the survey participants, we are
confident that this positive development will also continue in 2015."

"KfW compiles the German Private Equity Barometer jointly with the
Bundesverband deutscher Kapitalgesellschaften e. V. BVK exclusively
for Handelsblatt." A detailed analysis for the current German Private
Equity Barometer, including data table and graphic, is available at
www.kfw.de/gpeb.

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Christine Volk,
Tel. +49 (0)69 7431 3867, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de