With initial capital amounting to EUR300m, the Mittelstandsfonds fur Deutschland will commence operations in the first quarter of 2010. It is intended to serve sustainable small and medium-sized companies, from all sectors, with a turnover of up to EUR100m.
The fund’s focus is on strengthening mid-cap companies’ equity capital, the stabilization of their overall financing as well as financing of their investments and growth. The term of the participatory rights is seven years.
The fund’s capital will also be available to companies that are not clients of Deutsche Bank. Tranches for an equity capital participation will range between EUR2m and EUR10m.
As the fund provides companies equity capital in the form of participatory rights, the mid-caps remain independent in their entrepreneurial decisions.
Jurgen Fitschen, member of management board at Deutsche Bank, said: “By strengthening a company’s equity capital base, its credit rating is improved and its financing scope is widened. Discussions are currently taking place with other potential investors. It is important to us to be on the market as quickly as possible so that we can support the Mittelstand promptly.”
