Outlook and criteria for international investment in Germany
Over the last ten years, private equity has developed into an important asset class in Europe, and total private equity investments have seen an almost continuous increase since 1996. In Germany, a framework for new asset classes is currently under development following the coalition agreement among the ruling parties of 11 November 2005, and a private equity law is scheduled to come into force in January 2008.
Against this background PwC Germany conducted a trend survey among top management representatives of international private equity funds with a view to identifying:
- trends in relation to Germany as a business and investment location;
- patterns in future global private equity investment; and
- factors that they consider important when investing in a country.
Overall, the conclusions reached indicated that the current balance between the strengths and weaknesses of Germany as a location for private equity investment is a fragile one. As such, the lawmakers responsible for the proposed German private equity and tax legislation changes bear a heavy weight of responsibility for securing the country's future as an attractive location for international investors in the face of increasing international competition.
