DEG

Deutsche Investitions- und Entwicklungsgesellschaft mbH is a private equity arm of KfW Bankengruppe specializing in direct and fund of funds investments. It seeks to invest in middle market and mature companies. The firm provides financing in the form of loans, equity capital, mezzanine finance, and guarantees to small and medium-scale enterprises and projects. It invests in agriculture, with a focus on agribusiness, forestry, and food; infrastructure, with a focus on electricity generation and distribution, telecommunications, water supply and waste water management; services, with a focus on information technology services, tourism and health services; manufacturing industry, with a focus on building materials, metal-producing, and automobile-supporting industries; and the financial sector, with a focus on financing banks, leasing companies, and private equity funds. Within its agricultural investments, the firm focuses on companies that grow and process agricultural products for the domestic or foreign market; have specialized in the production, processing, and distribution of agricultural and forestry raw materials; and those that are planning to set up and extend production facilities. The firm prefers to invest in emerging market and developing and transition countries with a focus on Africa, Asia, Latin America, and Eastern Europe. Within Africa, the firm focuses on Sub-Saharan Africa. In east Africa industries of special importance to the firm are the financial sector, energy, agricultural, tourism, and mining. Its investments in South Africa include manufacturing industries, and agriculture. In West Africa it focuses on agribusiness and food industry and on the infrastructure sector. It provides direct loans and venture capital to facilitate reliable access to long-term capital for companies investing in Africa. Within Asia, it prefers to invest in China, India, Singapore, Philippines, Indonesia, Vietnam, Thailand, Laos, Cambodia, and Myanmar. For its Chinese investments, it targets the manufacturing industries, particularly investments into modernizations and better energy efficiency, agricultural products, healthcare sector, private-sector infrastructure projects in the field of renewable energies, water supply, waste water management and transport. Investments in India focus on traffic infrastructure, power generation using renewable energy, manufacturing, information and communications technology, pharmaceuticals and biotechnology. Within Europe, it invests in Central and Eastern Europe, particularly Germany. In Europe it focuses its investments in Russian Federation, where it invests in finance sector and manufacturing industry. In Turkey the firm sees potential especially in renewable energies, manufacturing, logistics, and building materials and in the agricultural sector. The firm’s focus is on providing long term loans and equity capital via fonds set up together with partners. Within Latin America, it primarily invests in Mexico, Mercosur, and Andean countries. In Mexico, the firm targets investments the manufacturing industries (particularly in the field of automotive supply), infrastructure (with focus on renewable energy) and agriculture. In Andean Countries it provides investments in the areas of manufacturing industries, in the finance sector especially refinancings for the SME business and housing financing - and agriculture have been co-financed. Another emphasis is on infrastructure financings, for example for energy supply with a focus on the use of renewable energies. In Mercosur it invests in agribusiness and the manufacturing industry, but also in the infrastructure sector. For its mezzanine financing, the firm provides conversion options. It typically invests between €5 million ($7.17 million) and €25 million ($35.83 million) in companies with enterprise value between €25 million ($35.83 million) and €500 million ($716.6 million), minimum sales value €20 million ($28.66 million), and minimum EBITDA of €5 million ($7.17 million). The firm takes a minority interest, voting rights, and a seat on the supervisory board of its investee companies. It seeks to make balance sheet investments and considers co-investment. Deutsche Investitions- und Entwicklungsgesellschaft mbH was formed on September 14, 1962 and is based in Cologne, Germany with additional offices across Africa, Asia, Europe, and Latin America.