Deutsche Beteiligungs AG Reports Strong H1 Transaction Activity but Adjusts Forecast Due to Valuation Multiples

Deutsche Beteiligungs AG (DBAG) demonstrated robust transaction activity in the first half of 2026, completing seven deals including three acquisitions and four disposals. However, the company's net asset value (NAV) per share declined to 33.65 euros as of June 30, 2026, from 36.37 euros at the end of 2025, primarily due to lower valuation multiples for peer group companies. This negative valuation impact also resulted in a net loss of 34 million euros for the period, contrasting with a net income of 8.2 million euros in the first half of 2025.

DBAG allocated 90.5 million euros to new investments, with notable transactions including the acquisition of a majority stake in Hipp Technology Group via a management buyout, strengthening its position in the healthcare sector. Additionally, DBAG acquired a minority stake in Bug Bounty Switzerland, a pioneer in AI-driven cybersecurity testing, financed entirely from its own balance sheet. The company also agreed to acquire a majority stake in TNL Group, a service provider supporting the energy transition through environmental permits and construction services for power lines and renewable energy projects, with the transaction expected to close in the third quarter of 2026.

The exits of duagon and Kraft & Bauer from DBAG Fund VII were particularly noteworthy, and DBAG continues to pursue further disposals to raise capital for new investments. The company's portfolio companies performed robustly, making positive overall contributions to gross gains and losses on measurement and disposal, even amidst macroeconomic headwinds. However, the declining valuation multiples for peer group companies more than offset these operational gains.

In terms of shareholder returns, DBAG distributed 26.1 million euros through dividends and share buybacks in the first half of 2026. The company reaffirmed its commitment to a cash dividend of at least 1.00 euro per share annually and will regularly evaluate share buyback programs.

The challenging geopolitical environment, including conflicts in the Middle East, disruptions to global trade routes, and tariff announcements, has dampened growth in Europe and pressured Germany's export-driven economy. While AI-based software solutions are boosting productivity in some IT sectors, they threaten others, leading to lower valuation multiples for peer companies. This negatively impacted DBAG's net gains and losses on measurement and disposal.

Tom Alzin, Spokesman of the Board of Management, commented, "From an operational perspective, our portfolio companies generated positive earnings contributions in the first half of the year, but this was more than offset by lower valuation multiples for peer group companies in certain sectors. That is why we revised our forecast for 2026 on 16 July." He added, "That makes no difference to our course: we still invest where we see structural growth and sell when the conditions are right. It is precisely during periods like these that attractive opportunities for sustainable value growth present themselves."

DBAG's available liquidity stood at 96.7 million euros as of June 30, 2026, down from 103.1 million euros at the end of 2025. EBITA from Fund Investment Services was 6.8 million euros, slightly lower than the 7.1 million euros reported in the first half of 2025. The company adjusted its forecast for the financial year 2026 on July 16, 2026, in response to the declining valuation multiples.