GERMANY – AXA Investment Managers is to offer German institutional investors access to a range of private equity products through its Frankfurt office, including fund of funds, secondary funds and venture capital.
The firm says the private equity roll-out in Germany reflects market demand and underpins expansion of the European venture market as a whole, which it predicts will develop just as rapidly as in the US.
“ Investors in Germany are particularly attracted to private equity fund of funds, for in addition to their pronounced risk spreading, they also offer enticing anticipated yields – even for smaller investments, “says AXA.
The group adds: “In the case of private equity investments, factors such as tax and regulatory restrictions also play an important role for German investors – and especially for pension funds and insurance companies.”
Via its subsidiary, AXA Private Equity Fund of Funds, the firm will administer two funds of funds – principally invested in Europe and the US.
Both are endowed with e300m in assets and will invest primarily in risk capital, buyout and other private equity funds.
Günther Skrzypek, chief executive officer for AXA Investment Managers Deutschland, comments:” The private equity market in Europe will develop just as rapidly as it did in the USA.
“ During 2000, $153.9bn was invested there by private equity companies. The USA has also been leading the field for years regarding yields – but Europe will catch up, because here in Europe we have the largest interconnected market in the world.”