Deutsche Beteiligungs AG (DBAG) reported a mixed first half of 2026, marked by robust operational performance from its portfolio companies but offset by declining valuation multiples for peer group companies. The company completed seven transactions, including three new investments and four disposals, and allocated 90.5 million euros to new investments. Despite the positive operational contributions, the net asset value (NAV) per share fell to 33.65 euros as at 30 June 2026, down from 36.37 euros at the end of 2025. Net income for the first half was -34 million euros, largely due to valuation-related effects.
The company's forecast for financial year 2026 was adjusted on 16 July 2026, prompted by the decline in valuation multiples. 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.”
Among the notable transactions, DBAG Fund VIII acquired a majority stake in Hipp Technology Group via a management buyout, strengthening exposure to the healthcare sector. DBAG also acquired a minority stake in Bug Bounty Switzerland, a pioneer in AI-driven cybersecurity testing, as a Long-Term Investment financed solely from its own balance sheet. Additionally, DBAG ECF IV agreed to acquire a majority stake in the TNL Group, a service provider supporting the energy transition through environmental permits and construction services for power lines, wind and solar projects, and traffic infrastructure. The TNL Group transaction is expected to close in the third quarter of 2026.
On the disposal side, the exits of duagon and Kraft & Bauer from DBAG Fund VII were particularly noteworthy. DBAG continues to work on further disposals to raise funds for new investments. The company returned 26.1 million euros to shareholders via dividends and share buybacks in the first half, and it intends to maintain a policy of at least 1.00 euro per share in cash dividends annually, with regular review of share buyback programmes.
The challenging environment includes geopolitical tensions, such as the armed conflict in the Middle East, disruption of sea routes for global energy security, and tariff announcements, which are dampening growth in Europe and pressuring Germany's export-driven economy. While AI-based software solutions are creating productivity gains for some IT businesses, they are threatening others, leading to lower valuation multiples for peer group companies and negatively impacting DBAG's measurement and disposal results.
Despite these headwinds, DBAG's portfolio companies withstood macroeconomic pressures and made positive overall contributions to gross gains and losses on measurement and disposal. The company's available liquidity stood at 96.7 million euros as at 30 June 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 in the prior-year period.
DBAG's focus remains on investing in structural growth areas and divesting when conditions are favorable. As Alzin noted, “It is precisely during periods like these that attractive opportunities for sustainable value growth present themselves.”
