Private equity deals in Germany surged so far this quarter, bringing the annual deal value total to €65.9 billion (about $69.4 billion) year-to-date, according to PitchBook.
PE deal value in Germany is 36% more than full-year 2023, despite an uncertain political landscape and shrinking economy, the deal data platform reports. The European Commission forecasts Germany’s economy to shrink by 0.1% this year, although the collapse of its coalition government is creating further uncertainty.
Adding to this, German Chancellor Olaf Scholz fired finance minister and coalition partner Christian Lindner of the Free Democrats earlier last month, leaving the government teetering on potential collapse. A federal election will be held in February 2025.
According to PitchBook, despite the turmoil, the quarterly total number of deals in Germany has reached a decade-high of €28 billion on the back of several larger transactions. With several more weeks left, it is already nearly double the €15.6 billion in value reported in Q2 2024.
However, the increase in investment is spread across fewer transactions with deal count just 60% of the second quarter’s level, with 100 transactions during the current period.
Write to Adam Orlando at Mining.com.au
Images: Stephan Widua (Unsplash)
