February 2, 2010

Deutsche Bank outlines “Mittelstandsfonds für Deutschland”

Aimed at enhancing the equity capital funding of mid-caps / Open to additional investors, the fund will commence operations in the first quarter / Independence ensured by M Cap Finance, the external fund manager

Deutsche Bank has today outlined details of the “Mittelstandsfonds for Deutschland”. Small and medium-sized companies can obtain equity capital at favourable conditions from the fund in the form of participatory rights. The fund provides an important contribution to enhancing the equity capital funding of Germany’s mid-caps.

“By strengthening a company’s equity capital base, its credit rating is improved and its financing scope is widened,” explained Jürgen Fitschen, member of Deutsche Bank’s Management Board, at the presentation of the fund. “The external management by M Cap Finance, which administrates the fund as an external fund company, facilitates the inclusion of additional investors,” said Fitschen. 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,” stated Fitschen.

With initial capital amounting to € 300 million, the Mittelstandsfonds für Deutschland will commence operations already in the first quarter. It is intended to serve sustainable small and medium-sized companies, from all sectors, with a turnover of up to 100 million euro. 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 € 2 million and € 10 million. 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. As the fund provides companies equity capital in the form of participatory rights, the mid-caps remain independent in their entrepreneurial decisions.

M Cap Finance administrates the Mittelstandsfonds für Deutschland as an external fund company. Based on the fund’s investment criteria, an independent investment committee takes the investment decisions.

Raising equity capital through the capital markets or private equity stakes is currently only feasible for the upper range of mid-cap companies. In most cases, public sector assistance programmes with equity capital features are only available in small-portioned batch sizes. One section of the economy has therefore been insufficiently supplied until now through the existing equity capital offers. This is where the Mittelstandsfonds für Deutschland steps in and closes the gap.

For additional information please contact:

Deutsche Bank
Press Department
Dr. Ronald Weichert
+49 69 910-38664
Frank Hartmann
+49 69 910-84752

M Cap Finance
Dietmar Westermann
+49 69 921016-20
Dr. Frank Golland
+49 69 921016-10

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 78,530 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.


About M Cap Finance

M Cap Finance is a leading independent management company for mid-cap mezzanine finance in Germany. Based in Frankfurt, the company comprises a highly experienced team of financing experts who specialize on the German mid-cap market.
M Cap Finance aims to provide Germany’s mid-caps with financing solutions with equity-capital characteristics for their growth as well as the optimization of their balance sheets.