Greeting 2011

The financial and economic crisis has once again highlighted the importance of a solid equity base - and not just for SMEs. Companies with a good equity base are better equipped for difficult times.

Equity capital has an important role to play in this context. Even in times of crisis, almost 1,200 companies were able to benefit in this way in 2009 with around 2.4 billion euros will be financed. In the meantime, the private equity market is on the road to recovery; the latest results of the "German Private Equity Barometer" confirm this.

However, the restrictive lending policies of banks have significantly changed the conditions for equity capital. Financing with extreme credit leverage is a thing of the past; higher equity ratios are required and minority interests are now also an issue. This is a positive development. High leverage ratios have gotten one company or another into trouble and have been heavily criticized in the "grasshopper debate."

Contrary to the widespread public perception, which is mostly focused on the very large takeover financings, equity capital plays a role primarily for SMEs. Nine out of ten companies that raised equity capital in Germany in 2009 employ fewer than 200 people.

The main providers of equity capital for SMEs are the Mittelständische Beteiligungsgesellschaften (SME investment companies), which again made investments worth 137 million in 2009 and are supported by counter-guarantees from the federal and state governments.