Lexology In-Depth – Private Equity

At the time of writing, the most recent available information is for 2022, for which Invest
Europe reported that Austrian private equity and venture capital funds raised €461 million
– a significant increase compared with the €220 million reported to have been raised in
The number and volume of Austrian private equity and venture capital funds continue to be
well below the European average.

ecolex – Unionsrechtliche Grenzen der Investitionskontrolle aus Anlass der Xella-Entscheidung

Nationale Investitionskontrollregime sind am Maßstab der Grundfreiheiten zu messen. Indirekte Direktinvestitionen fallen (meist) nicht in den Anwendungsbereich der FDI-ScreeningVO. Dies sind die wesentlichen Erkenntnisse aus dem Urteil in der Rs C-106/22, Xella, in dem sich der EuGH erstmals mit der Frage der Vereinbarkeit eines der von den MS erlassenen Investitionskontrollregimes mit der VO (EU) 2019/452 ( FDI-ScreeningVO) und den EU-Grundfreiheiten auseinanderzusetzen hatte. Die vom EuGH gezogenen unionsrechtlichen Grenzen sind im Rahmen nationaler Investitionsprüfungen zu beachten.

In-Depth: Mergers and Acquisitions

Market participants have adapted to the covid-19 pandemic and supply chain issues, which
resulted in robust private equity activity until around mid-2022. From mid-2022, activity
started to slow down in general, but in particular in the venture capital sector and less so
in the growth capital segment, as investors got more cautious given the macro-economic
downturn. This may cause certain auctions scheduled for 2023 to be postponed until there
is better overall visibility. We would also expect distressed M&A to pick up in 2023 as this
time around no government support schemes are planned.

Lexology Panoramic – Venture Capital

Venture capital (VC) provides seed funding and early-stage expansion and growth capital for start-ups and emerging growth companies. Individual angel investors and VC funds supply the funding and capital primarily in (priced) equity financing transactions and via (unpriced) convertible loans or forward equity instruments (eg, simple agreement for future equity (SAFE) or simple equity investment contracts (SEICs). Angels and VCs fund fast-growing start-ups led by promising entrepreneurs at negotiated private company valuations that are intended to be attractive enough to yield significant upside gains as the portfolio companies grow, generate revenues and eventually exit in a company sale or an initial public offering (IPO). Exits via an IPO are rather the exception and, if completed, happen on a foreign exchange.

LEXOLOGY – Getting The Deal Through – Private M&A 2024

Private M&A transactions in Austria are commonly structured as share deals. The specifc details of each transaction vary depending on the parties involved. The buyer and seller begin by defning their objectives, conducting a preliminary due diligence and evaluating the transaction’s strategic fit. They may engage advisors such as investment bankers, lawyers and accountants to assist in the process.