Private Equity – Global fund-of-funds for Germany’s private investors

Recent years have seen the development of a far stronger equity culture’ among private investors in Germany, thanks in considerable measure to the advent of the Neuer Markt. Frankfurt-based Global Vision, which last year launched the country’s first private equity fund-of-funds tailored specifically for private investors, is in the process of raising a successor vehicle. MPC Global Equity II has a target of DM100 million

(e50 million), but Dr Dieter Brender of Global Vision expects the total raised will be closer to the DM130 million amassed for the first fund. The fund’s minimum commitment level is DM50,000.

Dr Brender reports that 80 percent of the vehicle will be committed to fund positions, with a likely 60:40 split between venture capital and private equity vehicles. As its name suggests, the vehicle has a broad international investment remit and will build a geographically diversified portfolio.

The balance of the fund will be devoted to direct investments. Although MPC Global Equity II may co-invest alongside the funds in its portfolio, Dr Brender says that Global Vision will also source opportunities through its own network. For its direct investments, the fund will primarily focus on venture-stage and pre-IPO situations.

Pending closure of MPC Global Equity II, Global Vision has already underwritten eight fund investments, representing an aggregate commitment of approximately e30 million.

The funds so far selected by Global Vision are: Carlyle Partners III, which is targeting $2.5 billion; Deutsche European Partners IV, which has just closed on e1.5 billion;

DVCG Deutsche Venture Capital Gesellschaft Fonds III, seeking e125 million; Innotech Beteiligungsgesellschaft, which aims to raise at least DM50 million; MPM Bioventures, which has a maximum target of $400 million; Phoenix Venture, seeking at least e30 million; Bank Austria’s Technology Growth Fund II, with a target of up to e40 million; and TVM IV, which aims to raise e250 million.

The Global Vision management team, comprising Axel Jensen, Ludwig Nicki and Max Rueff as well as Dr Brender, combines a wide range of unquoted investment, banking and industrial experience.