The venture capital (VC) fund of funds, Wachstumsfonds Deutschland (Growth Fund Germany), has achieved its target volume of €1 billion.
This fund forms a vital part of the German Federal Government’s Future Fund, designed to enhance the venture capital ecosystem in Europe and Germany.
Wachstumsfonds Deutschland is one of the largest VC funds of funds established in Europe and is primarily funded through private resources.
The fund includes more than 20 major institutional investors, such as Allianz, BlackRock, Debeka, Generali Deutschland AG, and various insurers, superannuation funds, foundations, asset managers, and family offices.
The fund aims to invest in German and international VC funds, focusing on Europe and Germany, to improve access to growth capital for start-ups and innovative technology companies. KfW Capital is an investment intermediary and an investment advisor for Wachstumsfonds Deutschland, which the Universal Investment Group will manage.
Wachstumsfonds Deutschland features a dual structure of two parallel investment vehicles to accommodate different investor risk preferences.
Dr Robert Habeck, Federal Minister for Economic Affairs and Climate Action, said, “With the large participation of numerous private institutional investors, the target volume of €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,” added Habeck.
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