Foreword 2015

Equity capital is an important building block for financing German companies that should not be underestimated. Predominantly small and medium-sized companies rely on this type of financing, so private equity is primarily financing for medium-sized companies. Equity capital in the form of venture capital also plays an important role in business start-ups and expansions. It is always important to keep in mind that today's startups can be tomorrow's SMEs and thus an important driver of growth. I therefore expressly welcome the promotion of the provision of equity capital. Financing options for small and medium-sized enterprises in particular are occupying an increasingly broad place on the agenda, not only at the national political level but also in European and global bodies.

According to the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e. V. (BVK), the number of newly financed companies throughout Germany has remained constant at 1,200 to 1,300 for years. Private equity is a solution in many cases when a company needs capital and know-how to develop further. The turnover of private equity-financed companies today corresponds to around 8.1 percent of the gross national product. These companies employ approximately 1.19 million workers. And the fact that equity capital continues to be in demand is demonstrated by the more than 42,000 inquiries from equity-seeking companies or start-ups received by BVK member companies in 2013 alone. The German Private Equity Barometer for the second quarter of 2014 from BVK and KfW shows that market sentiment is improving again after a subdued start to 2014. In general, the outlook is considered to be good.

From a regulatory perspective, a busy year lies behind both the fund industry and fund supervision. In mid-2013, the German Investment Code came into force with the implementation of the AIFM Directive. This was the first time that all investment assets and their managers were placed under financial supervision in Germany. This also affected the investment sector. Supervisors and fund managers had to deal with issues that were new to them in each case. This did not always go without friction. But I am confident that after the tension of the transition period, regulatory issues can be resolved in the future with the constructive participation of all parties in a way that adequately takes into account investor protection and the special characteristics of equity funds.