Germany’s Private Capital Assets Under Management (AUM) Increases to €150bn by September 2023 – Preqin Territory Guide: The Rise of Private Capital in DACH 2024

Germany’s private capital assets under management (AUM) are on the rise, with a significant increase from €130bn at the end of 2022 to €150bn by September 2023. This growth is highlighted in a recent report published by Preqin, the global leader in alternative assets data, tools, and insights.

The report, titled “Preqin Territory Guide: The Rise of Private Capital in DACH 2024,” reveals that the DACH region, which includes Germany, Austria, and Switzerland, could drive the next wave of European private capital growth, with over €70bn in dry powder waiting to be deployed.

Of the countries in the DACH region, Germany leads in private capital AUM, with almost €150bn, ahead of Switzerland with almost €112bn. The report emphasizes the potential for private capital dealmaking and AUM growth in Germany’s Mittelstand, a group of businesses known for innovation.

While private fund managers have historically made few deals in the Mittelstand, recent acquisitions, such as the €12bn acquisition of Viessmann Climate Solutions by Carrier Global Corporation in December 2023, suggest a shift towards overseas ownership.

Switzerland has dominated private fundraising in the DACH region, with eight of the ten largest fund closes from 2018 to June 2024. The largest fund close outside of Switzerland was Germany-based Allianz Global Investor’s Diversified Private Debt Fund I, at over €3bn by final close in 2023.

David Dawkins, lead author of the report, notes that attitudes towards private capital in Germany are evolving, particularly as a new generation of owners takes the reins. This shift bodes well for private capital as the region enters a new cycle of growth.

Additional key findings from the report include a decrease in the number of DACH-based private equity funds that closed from 51 in 2022 to 46 in 2023, as well as the growing role of family offices in the region.

Overall, the report underscores the growing importance of private capital in Germany and the broader DACH region, signaling a promising outlook for the future of alternative assets in the area.

For more information or to speak with the report author, please contact Oliver Keyser at oliver.keyser@preqin.com.

About Preqin:
Preqin is a leading provider of essential data and insights for financial professionals investing in alternative assets. With over 20 years of experience, Preqin empowers professionals globally to make informed decisions throughout the investment lifecycle. Visit www.preqin.com for more information.