Increased Transparency Requirements and Restrictions - Private Equity Investments under the New German KAGB

On July 22, 2013, the German Capital Investment Act (“KAGB”) entered into force. It introduces a new set of substantive regulations affecting private equity investments in Germany. Most notably, the Act imposes restrictions on capital distributions from portfolio companies to private equity funds, and establishes certain disclosure and due diligence requirements in connection with their buy-out activities. In most cases, a transition period until July 21, 2014 will apply.

We attach a copy of our alert memo summarizing these issues. Please distribute the attached materials within your institution as you see fit. If you have any questions with regard to the issues addressed in the alert memo, please do not hesitate to contact Oliver Schröder, Michael Kern or Alexander Rahn at the Frankfurt office of Cleary Gottlieb or any of our partners and counsel listed under “Germany”, “Lawyers in this Practice”, under the “Practices” section, “Regions”, of the website.