The Wachstumsfonds Deutschland is a venture capital fund of funds that provides institutional investors with attractive investment opportunities in the Venture Capital asset class. As a fund of funds, it pursues a balanced investment strategy (risk / return).
With the final closing of the Wachstumsfonds Deutschland at its EUR 1 billion target volume, a key module of the has been realized.That makes the Wachstumsfonds Deutschland one of the largest VC funds of funds ever to be set up in Europe. It is funded primarily by private resources. Besides the Federal Government and KfW Capital as anchor investors, the fund has more than 20 major institutional investors including insurers, superannuation funds, foundations, asset managers and large family offices.
Together with other investors, the Wachstumsfonds Deutschland invests in German and international VC funds. This will significantly improve access to urgently needed growth capital for start-ups and innovative technology firms while strengthening Europe and Germany as an innovation location. The fund will be managed by the fund service platform Universal Investment Group, legal fund counsel is Clifford Chance and BNP Paribas Securities Services functions as custodian.
An innovative parallel fund structure takes into account the different risk preferences of the individual investor groups, making it possible to attract new investors to the VC asset class. The German Insurance Association (GDV) and its member companies played a key role in structuring the Wachstumsfonds Deutschland.
“With the large participation of numerous private institutional investors, the target volume of EUR 1 billion was achieved in a short span of time. It speaks for the strength of Germany as a business location that the Wachstumsfonds Deutschland has accomplished this objective with its innovative model, even in a difficult macroeconomic environment. The first investments have already been made, meaning that some of the capital is already impacting the VC market. The Wachstumsfonds Deutschland contributes significantly to implementing the start-up strategy of July 2022 and strengthens Germany as a location for business and innovation.”