Around one year after its final closing, the Growth Fund Germany has committed more than half of its target volume of EUR 567 million to 29 venture capital funds as of November 30, 2024. The fund is part of the Future Fund by the German Federal Government and is one of Europe's largest VC funds with a total volume exceeding EUR 1 billion.
Nearly 70% of the Growth Fund's financing comes from private sources. Among these investors are over 20 major institutional entities such as insurers, foundations, superannuation funds, asset managers, and large family offices. The Federal Government and KfW Capital are anchor investors. The fund invests in both German and international VC funds focusing on Europe and Germany. Its primary investment areas include information and communication technology (ICT) at 40% and life sciences at 36%. Other sectors like deep tech, industrial tech, climate tech, and food tech make up the remaining 24%.
More than 85% of the Growth Fund's portfolio aligns with Article 8 and Article 9 under the EU Sustainable Finance Disclosure Regulation (SFDR). This initiative aims to improve access to growth capital for start-ups and innovative technology firms while bolstering Europe's status as an investment hub. KfW Capital serves as both an investment intermediary and advisor for this fund managed by Universal Investment Group.
Dr. Jörg Goschin from KfW Capital commented: "The Growth Fund Germany is an excellent example of the intelligent interplay of private and public capital. As its investment adviser, we have already been able use our selective risk/return-oriented approach to build up a well-diversified portfolio that benefits in a particular way from significantly reduced entry valuations following the market correction in 2022. And we see further attractive investment opportunities for our target funds for the two remaining years of the four-year investment period."
Jochen Meyers from Universal Investment Group added: "In partnership with KfW Capital, we have created a solution that makes venture capital as an innovative asset class accessible for a range of investor groups. We are pleased to contribute to strengthening Germany’s position as a location for innovation and to accompany the success of our client KfW Capital."
KfW Capital is also preparing a second generation fund with fundraising scheduled for early 2026. The Future Fund has allocated EUR 200 million towards this new initiative.