Deutsche Telekom sets up one of the largest investment funds in Europe

Deutsche Telekom (DT) 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), according to a press release sent by the company to the media.

DTCP will launch in early 2015.

“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.

DT 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 DT 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.

“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.