Off-Market Investment Sourcing in Germany

Off-market real estate is usually found through a combination of a precise acquisition profile, systematic market research, local networks and direct, confidential contact with owners. Investors first define asset class, location, size, risk profile and budget. On this basis, suitable properties and their owners are identified from lawfully accessible sources and prioritised. Owners are then approached personally. Some opportunities are already being offered selectively; others only arise from a direct approach. Fox Capital performs this search under a written advisory mandate. Whether a suitable asset becomes available cannot be guaranteed.

Publicly marketed investments are offered through an open sale process, often with a broad group of bidders, structured data rooms and fixed timetables. Off-market opportunities are not openly advertised: they are either offered to a limited circle of buyers or arise from a direct approach to an owner who has not announced a sale. Off-market processes can be more discreet and flexible, but information may be less complete at the outset. Neither route is automatically better; the right approach depends on the investor's strategy, timetable and requirements.

Yes, within the framework of an advisory mandate Fox Capital can contact property owners confidentially on behalf of an investor. The approach is personal, presents the client's acquisition interest professionally and, where agreed, initially does not disclose the investor's identity. Data protection and unfair competition requirements are observed; the permissible form of contact is assessed in each case, with legal questions reviewed by external counsel. An approach does not imply that an owner is willing to sell; it opens a dialogue whose outcome depends entirely on the owner.

Family offices benefit from a clearly formulated investment strategy: preferred asset classes or sectors, holding period, return expectations, ticket size and governance requirements. Based on this, a local advisor can map the market, identify suitable properties or companies and approach owners discreetly. Many family offices value long-term relationships and confidentiality, which fits a personal owner approach. Fox Capital supports family offices under individually agreed mandates, from target definition through owner contact to transaction coordination, and can act as their ongoing local representative in Germany.

Sourcing Mittelstand targets starts with a clear investment thesis: sector, revenue and EBITDA range, ownership situation and role as platform or add-on. Market mapping, sector research and databases produce a longlist, which is qualified into a shortlist. Owners and shareholders are then approached confidentially and in German, often with sensitivity to succession questions and continuity for employees. Fox Capital supports private equity firms with target identification, ownership research, owner approaches and commercial assessment. Readiness to sell cannot be predicted and is clarified only in dialogue.

No. Off-market does not automatically mean a lower price. A less competitive process can create room for negotiation, but owners who are approached directly often have no pressure to sell and may expect a full or higher price. In addition, information may initially be limited, which requires careful assessment. The value of an off-market approach lies mainly in access, discretion and the ability to pursue targets that fit a strategy precisely, not in a guaranteed price advantage. Each opportunity must be assessed on its own merits.

Yes. Part of off-market sourcing is identifying properties or companies that match the investor's criteria even though no sale has been announced. Fox Capital analyses markets, identifies suitable assets and verifies ownership structures using lawfully accessible information. Selected owners can then be approached confidentially to explore whether a transaction is conceivable. It is important to be realistic: many owners will not wish to sell, and an identified target does not constitute an acquisition opportunity until the owner is prepared to enter into discussions.

Confidential owner sourcing combines research, careful selection and personal communication. After the search profile has been agreed, potential targets and their owners are identified and verified. The approach is made discreetly by Fox Capital, usually without initially naming the investor. If the owner shows interest, a confidentiality agreement is concluded before detailed information is exchanged. Throughout, data protection requirements and existing sale mandates are respected. The investor receives structured feedback and decides with Fox Capital on the next steps for each target.

To start a mandate, we need a clear picture of the investor and its objectives: type of investor and decision-making structure, target asset classes or sectors, preferred regions, investment volume and ticket size, return and risk parameters, deal structure (for example share or asset deal, majority or minority), timetable and any exclusion criteria. Information on financing and available equity is also helpful. On this basis, a written search profile is prepared, and the scope of services and remuneration are agreed in writing before work begins.

Remuneration is agreed individually and in writing before the mandate begins. Depending on scope, possible components include a monthly advisory retainer, project-based advisory fees, an individual acquisition mandate, an agreed success-based fee and long-term local representation, as well as combinations of these. Fox Capital does not offer free deal sourcing. The remuneration covers the advisory work and is not linked to a guarantee that a transaction will be completed. Exclusivity applies only where it has been individually agreed.

Fox Capital can support the development of a suitable financing structure and approach relevant financing partners, such as banks, debt funds or providers of mezzanine and preferred equity. Depending on the transaction, senior loans, whole-loan or unitranche structures, mezzanine capital or joint venture equity may be considered. Availability and terms depend on the asset or company, the investor's equity and creditworthiness and the lenders' requirements. The credit decision is always made by the financing partner; financing cannot be guaranteed.

Yes. Investors with recurring acquisition needs – for example a buy-and-build strategy or a gradual build-up of a real estate portfolio in Germany – can appoint Fox Capital as a long-term local partner. In this case, Fox Capital maintains a pipeline of potential targets, monitors the market, approaches owners as agreed and coordinates individual transactions. Such programmes are typically based on a framework mandate with a retainer and transaction-related components, agreed in writing and reviewed regularly.