Germany’s private equity (PE) market is regaining momentum, with the houses operating in this segment investing EUR 3.766 bn in 2004. This is 50% up on the year-earlier figure. In volume terms, all segments (early-stage and later-stage venture capital as well as buy-outs) showed gains over 2003. However, the investment focus shifted further away from start-up phase towards later-stage financing. This trend has been in place since 2001. The early-stage share fell again to 9.4% (12.1%). Expansion financing reached a share of 16.2% (15.5%). The other segments of later-stage venture capital – replacement, turnaround and bridge capital – increased to 3.0% (1.8%). The buy-out segment remains dominant with 71.3% of PE investment (2003: 70.7%).