Consultant Markus Hill on how foreign groups can enter Germany
Immanuel Kant once noted that “experience is understanding awareness”, but an interesting question is whether experience always has a positive influence on the actions of players in the market, or whether, under certain circumstances, they ignore experience.
The German investment market has become increasingly attractive for foreign asset managers in the last few years.
Some of the driving forces behind this could be; the ‘UCITS theme’ reducing administrative and regulatory hindrances; the professionalisation of investors there, and the development of an independent service provider industry, with marketing, PR, placement agents, and so on.
Either way, for some time now, investors have recognised that good asset management talents can be found outside Germany.
New funds have been launched by investment companies such as Universal Investment, Hauck & Aufhäuser, HSBC Trinkaus and other ‘promoters’ of funds that are independent of banks. They, too, have shown that the market in Germany is of interest.
The same applies to established, group-dependent companies such as DWS Investments and Union Investment, which follow the market for foreign asset market expertise attentively.
Whether it is “smaller” or “larger” managers coming from abroad, the experience they gain often displays a great deal of similarity.
Domestic providers, at a ‘micro level’, also require this wealth of experience.
There are naturally successful entrants to the market, however, it is of interest to know that this is without claim to completeness: which factors can present possible stumbling blocks for market entry?