Deutsche Beteiligungs AG (DBAG) navigated a challenging 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 announced seven transactions—three new investments and four disposals—while returning 26.1 million euros to shareholders via dividends and share buybacks. However, 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, primarily due to lower valuation multiples. Consequently, DBAG adjusted its forecast for the financial year 2026 on 16 July 2026.
The first half of 2026 saw DBAG allocate 90.5 million euros to new investments, including acquisitions of Hipp Technology Group, Bug Bounty Switzerland, and TNL Group. The exits of duagon and Kraft & Bauer from DBAG Fund VII were particularly notable. These transactions underscore DBAG's strategy of investing in high-growth companies and structuring new investments, even as market conditions remain volatile.
Portfolio companies demonstrated resilience despite macroeconomic headwinds, contributing positively to gross gains and losses on measurement and disposal. However, this operational strength was insufficient to counteract the negative impact of declining valuation multiples, which are influenced by geopolitical tensions and their effect on global trade and capital markets. The ongoing conflict in the Middle East, disruptions to key sea routes, and tariff announcements have dampened growth prospects in Europe, particularly affecting Germany's export-driven economy. While AI-driven software solutions offer productivity gains for some IT businesses, they pose existential threats to others, leading to a broad reassessment of valuations across sectors.
DBAG'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. Net income for the first half was -34 million euros, largely driven by valuation-related effects, compared to a positive 8.2 million euros in the prior-year period. EBITA from Fund Investment Services amounted to 6.8 million euros, slightly lower than the 7.1 million euros reported in H1 2025.
Despite the headwinds, DBAG remains committed to its shareholder-oriented distribution policy, aiming for a cash dividend of at least 1.00 euro per share annually and regularly evaluating share buyback programmes. The company's management emphasized that its investment strategy remains unchanged: focusing on structural growth opportunities and executing disposals when conditions are favorable.
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. 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."
