Feuerwehr-Fonds für Not leidende Firmen
Financial Times Deutschland, July 13, 2000
The business journal reports on the HypoVereinsbank and Roland Berger & Partners Turnaround Fund for the reorganization of larger small to medium-sized businesses in need. The "fire department fund," which begins in September with a total tranche of EUR 100 m, is the first fund of its kind in Europe. The bank and the consultancy, which hold 49 percent of the fund, are counting on a high potential for value increases. While they do not expect a compound return on capital invested, as is common, for example, in venture capital financing, investors may expect a yield of more than 15 percent. In contrast to venture capital companies for startups, the fund is aimed at old economy businesses with annual sales of at least EUR 50 m. These companies should not only be in a position to be turned around, but should also have "a sound market environment" and "a promising outlook for the future."
Source: Roland Berger