Germany Fund Launched – A New Framework for Private Investment

The Germany Fund is designed as an umbrella structure that bundles various financing instruments to support future-oriented investments, in particular in the following areas:

• Industry and SMEs (transformation, new technologies),
• Energy infrastructure (electricity and heating networks, renewable energy, geothermal energy, storage),
• Start-ups and scale-ups (deep tech, AI, biotech, security-related technologies),
• Raw materials and defence-related industries.

The first instruments are scheduled to launch from December 2025, with a step-by-step expansion from 2026 onwards.

Relevance for Our Clients

The Germany Fund does not focus on direct public investment, but rather on facilitating the participation of private capital. At its core is the combination of public guarantees and risk-sharing mechanisms with debt, equity and capital-market-based financing instruments.

Industry and SMEs benefit from improved access to financing for transformation and future-oriented investments, even in the case of elevated investment and technology risks.

Energy utilities, including those with municipal ownership or participation, can more easily finance substantial investments in electricity and heating networks as well as higher-risk projects such as geothermal energy, in particular through public risk-sharing mechanisms and the leverage of debt financing.

Start-ups and scale-ups gain improved access to venture and growth capital in Germany, especially in technology- and security-related sectors.

Private and institutional investors find in the Germany Fund a structured entry point for long-term investments in infrastructure and transformation projects supported by public risk-sharing mechanisms.

Our Advisory Approach

The Germany Fund does not offer a fixed catalogue of standardised products, but enables flexible, project-specific financing structures combining guarantees, loans, equity and capital-market-based instruments. Accordingly, our advisory approach focuses not only on individual funding products, but on the tailored structuring of each project.

Baker Tilly supports its clients in particular with:

• identifying the appropriate Fund components for each project or business model,
• structuring integrated financing solutions involving public funds, development banks and capital market instruments,
• assessing funding and state aid compliance as well as legal and tax structuring,
• preparing projects and investment decisions (including project companies, governance and risk allocation),
• supporting the approach to KfW, development banks and private investors.