Financial investors

US financial investor PSG Equity is rapidly expanding its portfolio of German software companies. The latest deal involves Munich-based IT monitoring firm Checkmk.

Many German companies have kept their distance from Saudi investors. But private equity exits are opening up a new avenue for Saudi money – including Riyadh-based sovereign wealth fund PIF.

In Germany, the IPO market is still in the doldrums. But the pipeline of deals is looking better across Europe, and B2B hotel platform HBX Group has just raised 725 million euros in Spain.

European companies with lower credit ratings are currently refinancing themselves at a rapid pace. According to data from investment bank J.P. Morgan, the volume of high-yield bonds and Term Loans B climbed to a record of 34 billion euros in January

The unclear tax classification as asset managers is putting the German mid-sized private equity scene in a bind. The public prosecutor's office in Munich has been investigating around 20 companies for years on suspicion of tax evasion.

The revival of M&A activities within the software sector is primarily led by financial investors. In doing so, they are reorganizing the industry – also in Germany.