Deutsche Beteiligungs — Investments picked up in Q225, exits still muted

Deutsche Beteiligungs (DBAG) posted a 1.9% NAV total return (TR) in H125, with the positive impact of higher valuation multiples partly offset by a negative contribution from portfolio earnings growth and higher portfolio net debt. DBAG delivered on its promise of a pick-up in investment activity, with three private debt investments, a long-term minority investment into FinMatch (funded entirely from DBAG’s balance sheet) and a follow-on private equity (PE) investment in an existing portfolio company. Consequently, DBAG considers itself fully invested. Exits proved more difficult to complete in the current environment than expected, with management now assuming at least one realisation by the end of the year (compared to three to four exits expected until Q126 at the time of the Q125 results release). DBAG’s shares now trade at a wide 30.3% discount to the last reported NAV of its private market investments, on top of which DBAG’s shares offer exposure to its fund services business, generating recurring earnings (guided at €10–15m in FY25).