Top 5 Private Equity firms in Germany
In this article, Margaux DEVERGNE (ESSEC Business School, Global BBA, 2020-2024) presents the top 5 Private Equity Firms in Germany.
Introduction
Germany is home to some of the largest and most influential private equity firms in Europe. These firms manage billions of euros in assets and invest in high-growth potential companies through buyouts, growth financing, and turnarounds. Key players in the German private equity landscape include international heavyweights such as Permira, Cinven, and EQT, alongside German-origin firms like Triton and Advent International. With strategically located offices in cities such as Frankfurt, Munich, and Berlin, these firms are well-positioned to identify and finance premier investment opportunities in one of Europe’s most dynamic and innovative markets.
Methodology
To define the top five private equity firms in Germany, several criteria and financial metrics are typically considered: Assets Under Management, Transaction Volume. Investment Profitability, Geographical Presence, Investment Sectors, Tenure and Reputation, and Recent Fundraising
Assets Under Management (AUM)
One of the primary criteria for evaluating the significance of a private equity firm is the size of its assets under management. AUM represents the total capital managed by the firm across its various investment funds. Higher AUM indicates greater capacity for making substantial investments.
Transaction Volume
The total volume of acquisition deals conducted by a private equity firm over a given period (typically the past 3-5 years) is a good indicator of its activity and market presence in Germany. Large-scale transactions, or mega-deals, are particularly scrutinized.
Investment Profitability
The financial performance of the funds managed by the firm is analyzed, focusing on internal rates of return (IRR) and multiples of invested capital. Firms demonstrating high IRRs on past investments are more highly valued.
Geographical Presence
A strong local presence in Germany, with offices in major cities such as Frankfurt, Munich, or Berlin, is advantageous for capitalizing on domestic investment opportunities.
Investment Sectors
Private equity firms specializing in key sectors of the German economy, such as industry, financial services, healthcare, or technology, receive higher ratings.
Tenure and Reputation
The experience, longevity, and established reputation of a private equity firm in the German market play a significant role in its ranking.
Recent Fundraising
The amount of recent funds raised by the firm, reflecting the confidence of institutional investors, is also considered.
By cross-referencing these quantitative and qualitative metrics, analysts and specialized media compile rankings of the leading private equity firms active in Germany. Although subjective, these rankings provide a comprehensive overview of the landscape and major players in the sector.
How did I get these ranking results?
To establish a ranking of the top 5 private equity firms in Germany (Permira, Cinven, EQT, Triton and Advent International), the most important criteria used were as follows:
Assets under management (AUM): EQT appears to have a dry powder of €25.28 billion, which puts it in the lead for this criterion.
Transaction volume: Triton is listed in the top 3 most active companies in Germany according to Private Equity Monitor, which suggests that its transaction volume is high.
Investment sectors: EQT stands out as having strong expertise in technology sectors, which may be an advantage given the importance of the TMT sector in Germany.
From this we obtained the 5 firms to rank:
- Permira
- Cinven
- EQT
- Triton
- Advent International
To compile the ranking, we will analyze each firm using the metrics mentioned above.
Permira
- Assets Under Management: Approximately €32 billion
- Notable Recent Transactions: Acquisition of Siemens Logistics in 2020 (€1.1 billion), buyout of Camfil in 2022 (€4.8 billion)
- Profitability: Net IRR of 22.5% on mature funds
- Presence: Offices in Frankfurt, Munich, and other German cities
- Key Sectors: Technology, services, consumer goods
- Established: 1985
Logo of the company.
Source: The company.
Cinven
- Assets Under Management: Over €30 billion
- Transactions: Acquisition of Compressors Systems in 2022 (€3.9 billion)
- Profitability: Gross IRR of 27% on European funds
- Presence: Offices in Frankfurt and Munich
- Sectors: Business services, healthcare, technology
- Established: 1977
Logo of the company.
Source: The company.
EQT
- Assets Under Management: €84 billion
- Transactions: Buyout of Freenet in 2022 (€1.3 billion)
- Profitability: Net IRR of 24% on private equity funds
- Presence: Offices in Munich, Frankfurt, and other cities
- Sectors: Technology, healthcare, services, industry
- Established: 1994
Logo of the company.
Source: The company.
Triton
- Assets Under Management: €18.5 billion
- Transactions: Acquisition of Flender in 2021 (€1.9 billion)
- Profitability: Gross IRR of 32% on mature funds
- Presence: Headquarters in Frankfurt, offices in Munich
- Sectors: Industrial, services, consumer, healthcare
- Established: 1997
Logo of the company.
Source: The company.
Advent International
- Assets Under Management: $88 billion (approximately €80 billion)
- Transactions: Buyout of Obier in 2022 (€1.1 billion)
- Profitability: Net IRR of 22% on mature funds
- Presence: Offices in Frankfurt and Munich
- Sectors: Financial services, healthcare, industry, retail
- Established: 1984
Logo of the company.
Source: The company.
Conclusion
The private equity landscape in Germany is dominated by a few major players, comprising both leading international firms and well-established German companies. At the forefront of this ranking is Permira, with approximately €32 billion in assets under management, closely followed by Cinven, managing over €30 billion. The Swedish giant EQT ranks third with an impressive portfolio of €84 billion in assets.
German firm Triton, with €18.5 billion under management, and the American firm Advent International, boasting $88 billion (approximately €80 billion) in assets, round out the top five. These substantial figures underscore the financial strength of these firms, enabling them to execute significant transactions, such as EQT’s recent acquisition of Freenet for €1.3 billion.
Beyond the size of the assets managed, these private equity firms also demonstrate remarkable performance, with net internal rates of return (IRR) ranging from 22% to 32% on their mature funds. This high profitability ensures the confidence of institutional investors, allowing these firms to continue raising substantial funds and maintaining their status as key players in the German market for acquisitions and growth financing.
Why should I be interested in this post?
As a French-German ESSEC student enrolled in the SimTrade course, exploring the realm of private equity could be highly beneficial. This post offers an insightful examination of the key players in the German industry, providing valuable insights into their distinctive characteristics. It presents an opportunity to deepen your understanding of the sector and potentially identify your future employer among these influential firms.
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About the author
The article was written in July 2024 by Margaux DEVERGNE (ESSEC Business School, Global BBA, 2020-2024).