Deutsche Beteiligungs AG (DBAG) reported a mixed first half of 2026, marked by strong transaction activity and a robust operational performance from its portfolio companies, but also by declining valuation multiples that prompted the company to adjust its full-year forecast. The private equity firm announced seven transactions in the first six months, including three new investments and four disposals, and allocated 90.5 million euros to new investments.
The company's net asset value (NAV) per share stood at 33.65 euros as of June 30, 2026, down from 36.37 euros at the end of 2025. This decline was primarily driven by lower valuation multiples for peer group companies, which more than offset the positive contributions from portfolio companies' operational performance. Net income for the first half totaled -34 million euros, compared to 8.2 million euros in the same period last year, reflecting valuation-related effects.
Despite the challenging market environment, DBAG's portfolio companies demonstrated resilience, making positive overall contributions to gross gains and losses on measurement and disposal. The company's available liquidity amounted to 96.7 million euros as of the reporting date, slightly down from 103.1 million euros at the end of 2025.
Among the notable transactions, DBAG Fund VIII acquired a majority stake in Hipp Technology Group, a move that strengthens DBAG's presence in the healthcare sector. Additionally, DBAG 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. Furthermore, DBAG ECF IV agreed to acquire a majority stake in the TNL Group, a service provider supporting the energy transition through environmental permitting and construction services for power lines and renewable energy projects. 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 capital for new investments in high-growth companies.
The company returned 26.1 million euros to shareholders through dividends and share buybacks in the first half. DBAG reiterated its commitment to a shareholder-oriented distribution policy, aiming for a cash dividend of at least 1.00 euro per share annually and regularly evaluating share buyback programs.
Geopolitical challenges, including armed conflicts and trade disruptions, have weighed on global capital markets and Europe's growth prospects. These factors have contributed to declining valuation multiples for peer group companies, which adversely affected DBAG's net gains and losses on measurement and disposal. However, the ongoing development of AI-based software solutions presents both opportunities and threats across sectors, influencing valuation dynamics.
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."
DBAG's EBITA from Fund Investment Services amounted to 6.8 million euros in the first half of 2026, slightly down from 7.1 million euros in the prior-year period. The company's forecast adjustment reflects the impact of valuation multiples, which are influenced by external market conditions beyond DBAG's control.
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