The Confirmation of Investment Letter is a crucial document in German investment transactions, used to formally document and confirm an investor's commitment to an investment opportunity. This document is typically issued following initial investment discussions and due diligence, but prior to the final execution of investment documentation. It serves multiple purposes under German law, including confirming the investor's commitment, acknowledging investment terms, and ensuring compliance with German regulatory requirements, particularly under the Securities Trading Act (WpHG) and Investment Code (KAGB). The letter is commonly used in various investment contexts, from fund investments to direct security purchases, and must comply with German civil law requirements while incorporating necessary regulatory disclosures and acknowledgments. The document is particularly important for maintaining clear records of investment commitments and ensuring all parties have a documented understanding of the investment terms and associated risks.

1. Letterhead and Date: Official letterhead of the issuing entity and date of the letter

2. Recipient Details: Full name and address of the investor

3. Investment Summary: Brief overview of the investment amount, type of security or investment vehicle, and key terms

4. Investment Confirmation: Detailed confirmation of the specific investment terms, including price, quantity, and class of securities or investment type

5. Investor Representations: Confirmations from the investor regarding their status, eligibility, and understanding of the investment

6. Risk Acknowledgments: Specific acknowledgment of understanding the risks associated with the investment

7. Compliance Statements: Confirmations regarding compliance with relevant German securities laws and regulations

8. Governing Law: Confirmation that the letter is governed by German law

9. Signature Block: Space for signature, name, and title of authorized signatory