Die angelsächsische Achse

Abstract

The Anglo-Saxon axis. An empirical analysis of buy-outs and location structures of private equity firms in Germany. The current research suggests that equity investment firms in Germany are concentrated in five or six regional centres of equal importance. While the theoretical discussion focuses primarily on venture capital, empirical studies on locations of venture capital and buy-outs usually make no explicit distinction between the two forms of investment. The analysis presented here makes a systematic distinction between venture capital and buy-outs, with a special focus on buy-outs because this form of investment is of greater economic importance. The paper also extends the range of available data by including data on company transactions. An evaluation of all buy-outs in Germany in 2012 indicates that Munich is the only major location of buy-out firms in Germany, apart from Frankfurt am Main. The branch offices of equity investment firms based in the USA and the United Kingdom (UK) are a crucial factor. Moreover, many private equity firms operate directly from outside Germany, particularly from London. Thus, one might speak of an Anglo-Saxon axis of buy-out firms. These firms have a significant competitive advantage due to better fundraising opportunities in the financialised economies of the USA and the UK. Therefore, it is argued that, rather than focusing exclusively on the regional capital supply to explain the infrastructure of equity investment firms, as it was done in the past, the research should also take the organization of sources of funds into consideration.