KKR-Chef Scott Nuttall: „In diesem Jahr gab es für die Private-Equity-Branche viel Gegenwind“

In 2023, KKR-Chef Scott Nuttall expressed that the Private-Equity sector faced considerable obstacles. He revealed that the German government advertised its first investment summit to attract capital from investors like KKR. The KKR firm has been active in Germany since 1999, having allocated over 20 billion Euros of its own capital in the country, with a significant portion invested in the past six years.

The company's interest in Germany remains steadfast and long-term. Nuttall stated that the discussions with the Bundesregierung and its reform-oriented approach have boosted their confidence. However, they questioned the purpose of such a conference, suggesting that the government should be asked. The summit serves as a significant signal that the government is willing to collaborate closely with private investors to enable additional investments.

To attract more capital, Nuttall emphasized focusing on the announced reforms and their implementation. He noted Germany's strong industrial base, competent engineers, and robust mid-cap sector, along with a relatively low national debt. He expressed optimism that the announced reforms, once implemented, would make Germany even more attractive to investors.

Though the AfD's successes in Landtag elections and the constant bickering within the ruling coalition have been observed, Nuttall remains confident that the major reform projects will materialize. Nuttall emphasized that KKR's investment horizon spans ten to twenty years, and they remain independent of individual reforms. However, he referenced a quote about how Germany acts like a good friend with many strengths but sometimes focuses excessively on past failures.

Nuttall praised Germany's potential, stating that they remain good friends, and Germany had promised to change two years ago. He acknowledged that little progress has been made on reforms, but many investment opportunities exist today in the mid-cap sector, infrastructure projects, and growth firms. Nuttall suggested that the government could increase the number of attractive investment opportunities through appropriate policies.

Despite stagnating economic growth due to high tariffs and energy prices, Nuttall noted a recent resurgence in economic trends. He confirmed that they invest in promising companies needing capital to expand abroad. Nuttall stated that any company, fundamentally, is a candidate for investment. He praised the German middle class, especially family-owned businesses, for their high potential but highlighted the lack of succession plans.

Nuttall explained that KKR builds relationships with founders or family members before investing, emphasizing trust and understanding of their goals. Throughout their transactions, KKR focuses on the target company's objectives and what they bring to the table. Nuttall provided examples of knowledge and access to new markets as valuable contributions.

He emphasized that this partnership model works well in Germany, accounting for 80% of their Private-Equity investments. In the energy sector, KKR recently announced plans to partner with RW.