{"id":44100,"date":"2017-08-01T10:13:03","date_gmt":"2017-08-01T08:13:03","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/private-equity-investments-in-the-financial-sector-a-regulatory-challenge\/"},"modified":"2017-08-01T10:13:03","modified_gmt":"2017-08-01T08:13:03","slug":"private-equity-investment-in-the-financial-sector-a-regulatory-challenge","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/private-equity-investment-in-the-financial-sector-a-regulatory-challenge\/","title":{"rendered":"Private Equity Investments in the Financial Sector \u2014 A Regulatory Challenge"},"content":{"rendered":"

Dr. Thomas K\u00f6nig<\/strong> \u2014 Part\u00adner Shear\u00adman & Ster\u00adling LLP, Frankfurt\/Main<\/p>\n

Dr. Kolja Stehl<\/strong> \u2014 Coun\u00adsel Shear\u00adman & Ster\u00adling LLP, Frankfurt\/Main and London<\/p>\n","protected":false},"excerpt":{"rendered":"

So far, take\u00adovers of banks by private equity spon\u00adsors have been a rarity in Germany. One of the reasons for this may be that, as a result of the finan\u00adcial crisis, regu\u00adla\u00adtory appr\u00adoval proce\u00addu\u00adres have become incre\u00adasingly complex and leng\u00adthy over time and have thus become a deter\u00admi\u00adning factor in the course of tran\u00adsac\u00adtions. The regu\u00adla\u00adtory requi\u00adre\u00adments for the design and imple\u00admen\u00adta\u00adtion of such tran\u00adsac\u00adtions and the appr\u00adoval prac\u00adtice to date will ther\u00ade\u00adfore be briefly high\u00adligh\u00adted and discus\u00adsed below.<\/strong><\/p>\n

In addi\u00adtion to earlier cases of acqui\u00adsi\u00adti\u00adons of stakes in parti\u00adally distres\u00adsed banks (for exam\u00adple, J.C. Flowers\u2019 entry into HRE, Lone Star\u2019s acqui\u00adsi\u00adtion of IKB in 2008, or Lone Star\u2019s acqui\u00adsi\u00adtion of D\u00fcssel\u00addor\u00adfer Hypo\u00adthe\u00adken\u00adbank (D\u00fcssel\u00adHyp), also by Lone Star, in 2010), parti\u00adcu\u00adlar mention should be made in 2014 of RHJ\u2019s acqui\u00adsi\u00adtion of BHF-Bank (which has since been resold to Oddo) and the purchase of the German KBC subsi\u00addiary by Teacher Reti\u00adre\u00adment System of Texas, Apollo Global Manage\u00adment, Apollo Commer\u00adcial Real Estate Finance, and Grove\u00adpoint Capital.<\/p>\n

It is noti\u00adceable that the regu\u00adla\u00adtory appr\u00adoval proce\u00addu\u00adres have become incre\u00adasingly complex and leng\u00adthy over time.<\/p>\n

The reason for this is the some\u00adti\u00admes considera\u00adble trans\u00adpa\u00adrency requi\u00adre\u00adments, parti\u00adcu\u00adlarly in the case of private equity struc\u00adtures, which can include not only the direct and indi\u00adrect share\u00adhol\u00adders and inves\u00adtors but also other port\u00adfo\u00adlio compa\u00adnies of the private equity spon\u00adsor. Also, the mate\u00adrial requi\u00adre\u00adments of being bound to a long-term busi\u00adness and risk plan that is viable from the super\u00advi\u00adsory point of view, possi\u00adbly combi\u00adned with the willing\u00adness to provide further equity and liqui\u00addity in the event of a crisis, can only be recon\u00adci\u00adled to a limi\u00adted extent with the invest\u00adment approach usually pursued by private equity spon\u00adsors. Nevert\u00adhel\u00adess, in view of the exis\u00adting conso\u00adli\u00adda\u00adtion pres\u00adsure in the banking sector, it seems quite conceiva\u00adble that it will incre\u00adasingly be targe\u00adted by finan\u00adcial inves\u00adtors in the future.<\/p>\n","protected":false},"featured_media":41480,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2553,2572,2576],"product_tag":[1545,1910,2433,2434,2435,2436,2437,2438,2439,2440,2441,2442],"class_list":{"0":"post-44100","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2017","8":"product_cat-dr-thomas-koenig-en","9":"product_cat-dr-kolja-stehl-en","10":"product_tag-financial-crisis","11":"product_tag-thomas-en","12":"product_tag-king","13":"product_tag-steal","14":"product_tag-kolja-en","15":"product_tag-acquisition-of-equity-interests","16":"product_tag-private-equity-sponsors","17":"product_tag-transaction-history","18":"product_tag-acquisition","19":"product_tag-risk-planning","20":"product_tag-consolidation-pressure","21":"product_tag-banking-sector","22":"pa_sprache-english-3","23":"pa_sprache-german","25":"first","26":"outofstock","27":"taxable","28":"shipping-taxable","29":"purchasable","30":"product-type-variable"},"yoast_head":"\nPrivate Equity Investments in the Financial Sector - A Regulatory Challenge - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/private-equity-investment-in-the-financial-sector-a-regulatory-challenge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Private Equity Investments in the Financial Sector - A Regulatory Challenge - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"So far, takeovers of banks by private equity sponsors have been a rarity in Germany. One of the reasons for this may be that, as a result of the financial crisis, regulatory approval procedures have become increasingly complex and lengthy over time and have thus become a determining factor in the course of transactions. The regulatory requirements for the design and implementation of such transactions and the approval practice to date will therefore be briefly highlighted and discussed below. In addition to earlier cases of acquisitions of stakes in partially distressed banks (for example, J.C. Flowers' entry into HRE, Lone Star's acquisition of IKB in 2008, or Lone Star's acquisition of D\u00fcsseldorfer Hypothekenbank (D\u00fcsselHyp), also by Lone Star, in 2010), particular mention should be made in 2014 of RHJ's acquisition of BHF-Bank (which has since been resold to Oddo) and the purchase of the German KBC subsidiary by Teacher Retirement System of Texas, Apollo Global Management, Apollo Commercial Real Estate Finance, and Grovepoint Capital. It is noticeable that the regulatory approval procedures have become increasingly complex and lengthy over time. The reason for this is the sometimes considerable transparency requirements, particularly in the case of private equity structures, which can include not only the direct and indirect shareholders and investors but also other portfolio companies of the private equity sponsor. Also, the material requirements of being bound to a long-term business and risk plan that is viable from the supervisory point of view, possibly combined with the willingness to provide further equity and liquidity in the event of a crisis, can only be reconciled to a limited extent with the investment approach usually pursued by private equity sponsors. 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