Deutsche Boerse: 19th German Equity Forum In Munich: More Than 500 Enterprises And Investors - Business Climate In The Private Equity Market Somewhat Improved

Around 500 entrepreneurs and investors participated in the 19th German Equity Forum, which was held by KfW Mittelstandsbank (KfW SME Bank) and Deutsche Börse AG, together with the Bavarian Ministry of Economics at the 'Forum am Deutschen Museum' in Munich today. They used the forum to make new contacts and inform themselves about current developments in the private equity market. Innovative companies presented their business models in front of 250 investors with the objective to find providers of equity finance. Developments in the last few years have shown that around half of the companies found a suitable financing partner within one year after giving a presentation at the forum. Discussions were held and information provided at the different forums, for instance on the topics of 'Spin-offs from universities' and 'Chances of the high-tech site Germany'. The main focus of the conference was on nano-technology and life science.

"We have maintained the German Equity Forum also during difficult years and thus underlined that we regard private equity as a serious financing alternative also in Germany," said Dr. Peter Fleischer, member of the Board of Managing Directors of KfW Bankengruppe (KfW banking group). "We are pleased to see that after hard years the business climate in the private equity market has again improved, though this has not yet had an impact on the early-stage segment."

KfW Mittelstandsbank supports financings at this stage under the newly introduced ERP Start Fund. The ERP Start fund offers up to EUR 3 million to young technological enterprises provided they find another financing partner who provides the same amount of funds. "The ERP Start Fund underlines our promotional strategy in the area of private equity financing: We offer support in line with the market because we see ourselves also as a market developer," Dr. Peter Fleischer said.

"For many companies an IPO offers an attractive financing alternative. The increasing interest in IPOs is also a sign of this," said Rudolf Ferscha, member of the Executive Board of Deutsche Börse AG and chairman of the Executive Management of the Frankfurt Stock Exchange. Deutsche Börse offers issuers in the Prime Standard and General Standard segments a listing in accordance with European transparency requirements. The regulated unofficial market of the Frankfurt Stock Exchange offers smaller companies a cost-saving alternative to have their shares traded in the market. Thus, Deutsche Börse offers IPO candidates three different segments that are tailored to the specific needs of issuers and investors alike.

The Bavarian Minister of Economics Otto Wiesheu emphasized that the Free State of Bavaria recognized the importance of private equity at a very early stage: "Already in the mid-1990s we adjusted our technology policy to this financing instrument for innovative enterprises. By German comparison most private equity companies are domiciled in Munich. For this reason, too, Bavaria is today the leading high-tech location in Germany."

The first German Equity Forum was held nine years ago. Since then has been held twice a year - in spring and in autumn. The spring meeting focuses on equity-seeking companies from the entire pre-IPO financing phase, while the autumn meeting concentrates on later-stage enterprises and listed companies.