Deutsche Telekom sets up one of the largest investment funds in Europe
The venture capital fund T-Venture, established in 1998, will be closed to new investments but the team will remain on board and continue to manage the existing portfolio. New investments will be executed through Deutsche Telekom Capital Partners.
As a hybrid fund, DTCP combines the strengths of a large corporate group with the speed and expertise of an investment fund.
Deutsche Telekom is to considerably expand the scope and volume of its investments in venture capital and technological innovation.
The Supervisory Board of Deutsche Telekom AG has approved the setup of a specialist team of investment managers in a newly formed company called Deutsche Telekom Capital Partners (DTCP).
Deutsche Telekom plans for DTCP to have a fund volume of EUR 500 million for a 5-year period on top of the existing investments in T-Venture. This doubles the Group's commitment to investments in ventures and innovation. DTCP will be one of the largest investment funds in Europe. DTCP will also advise Deutsche Telekom on existing investments in STRATO, Interactive Media, Scout, Deutsche Telekom Innovation Pool (TIP) and T-Venture.
The venture capital fund T-Venture, established in 1998, will be closed to new investments but the team will remain on board and continue to manage the existing portfolio of around 100 companies. T-Venture will also retain responsibility for follow-up investments within this portfolio. New investments will be executed through DTCP.
DTCP will support Deutsche Telekom’s strategy as an external innovation engine through investments in venture capital, with a special focus on Germany’s exciting and growing start-up scene. On top of that, DTCP will also expand its activities to include private equity investments in existing undertakings to foster operational cooperation between over-the-top companies and Deutsche Telekom.
"DTCP combines the expertise and strength of a large corporation with the agility and flexibility of a small investment company: the best of both worlds to take Deutsche Telekom forward," said Tim Höttges, CEO of Deutsche Telekom.
"I’m excited about the job of unifying Deutsche Telekom's innovation investments in one place, and being able to attract world-class talent to Germany to create a truly unique innovation engine," said Vicente Vento, currently Senior Vice President of Mergers & Acquisitions at Deutsche Telekom and CEO-designate of DTCP.
"As a hybrid fund, DTCP combines the strengths of a large corporate group with the speed and expertise of an investment fund, and expands Deutsche Telekom's spectrum considerably. We are opening up new opportunities for ourselves to increase the value of our own investments that are not part of our core business in the long term. And our private equity approach will allow us to invest in more mature companies that have to date been outside the reach of a purely venture capital focus," emphasized Thorsten Langheim, Senior Vice President, Group Corporate Development, who will be responsible for DTCP at Deutsche Telekom.
DTCP will launch in early 2015.
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About Deutsche Telekom
Deutsche Telekom is one of the world’s leading integrated telecommunications companies with over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2013). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide. The Group generated revenues of EUR 60,1 billion in the 2013 financial year – more than half of it outside Germany.