Volatility, unsettled economy induce investor caution
VC activity held steady, with notable investments flowing into defensive sectors such as decarbonisation and healthcare, even as overall dealmaking remained subdued. Exit activity was limited, although strong capital reserves suggest room for a rebound. PE saw a slowdown in deals after a busy end to 2024, while exit momentum picked up with a couple of large-scale transactions. Public equity markets showed surprising strength, with the DAX 40 outperforming peers, driven by gains in utilities, financial services, and industrials. However, underlying macroeconomic indicators paint a cautious picture, with continued economic contraction and inflation driven by persistent pressure in food and services. On the geopolitical front, Germany’s increase in defence spending could open new opportunities in the arms and technology sectors. Overall, investors remain watchful amid ongoing volatility and economic uncertainty.
Table of contents
| Market overview | 2 |
| Commentary | 3 |
| City comparison | 4 |
| Private markets | 5 |
| VC deal activity | 7 |
| VC exit activity | 9 |
| VC fundraising activity | 10 |
| PE deal activity | 11 |
| PE exit activity | 13 |
| PE fundraising activity | 14 |
| Corporate acquisition activity | 15 |
| Public equity markets | 16 |
