Deutsche Beteiligungs AG (DBAG) experienced a mixed first half in 2026, marked by robust operational performance from its portfolio companies but overshadowed by declining valuation multiples for peer group companies. This dynamic led the company to adjust its financial forecast for 2026 on 16 July. The company's net asset value (NAV) per share stood at 33.65 euros as of 30 June 2026, down from 36.37 euros at the end of 2025. Net income for the first half totaled -34 million euros, compared to 8.2 million euros in the same period last year, primarily due to valuation effects. EBITA from Fund Investment Services reached 6.8 million euros, slightly below the prior year's 7.1 million euros.
Despite the valuation headwinds, DBAG demonstrated strong transaction activity, agreeing upon or closing seven transactions in the first six months: three acquisitions and four disposals. Notable disposals included the exits of duagon and Kraft & Bauer from DBAG Fund VII. These transactions generated liquidity, with available funds amounting to 96.7 million euros as of 30 June 2026, down from 103.1 million euros at the start of the year. The company allocated 90.5 million euros to new investments, including a majority stake in Hipp Technology Group, a minority investment in Bug Bounty Switzerland, and an agreement to acquire a majority stake in TNL Group.
The robust performance of portfolio companies was a positive highlight. Despite macroeconomic headwinds, they made positive overall contributions to gross gains and losses on measurement and disposal. However, this was insufficient to offset the negative impact of lower valuation multiples for peer group companies, which are used to value DBAG's portfolio. The company's shareholder-oriented distribution policy remains intact, with 26.1 million euros returned to shareholders via dividends and share buybacks in the first half. DBAG aims to continue paying a cash dividend of at least 1.00 euro per share annually and will regularly consider additional share buybacks.
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."
The adjustment in forecast is a direct response to the challenging geopolitical environment, including conflicts in the Middle East, disruptions to global trade routes, and tariff announcements, which are dampening growth in Europe and pressuring Germany's export-driven economy. While AI-driven software solutions are boosting productivity in some sectors, they threaten others, contributing to the decline in valuation multiples. DBAG's strategic focus remains on investing in high-growth companies and structuring new investments, leveraging its expertise to navigate these turbulent times.
