Deutsche Beteiligungs AG (DBAG) reported a mixed first half of 2026, with robust operational performance from portfolio companies offset by declining valuation multiples for peer group companies, leading to a net loss and an adjusted forecast for the financial year 2026.
The company announced on August 6, 2026, that its 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. Net income for the first half was -34 million euros, compared to 8.2 million euros in the same period last year. The decline was primarily driven by valuation-related effects, despite positive contributions from portfolio companies to gross gains and losses on measurement and disposal.
EBITA from Fund Investment Services amounted to 6.8 million euros in the first half of 2026, slightly lower than the 7.1 million euros reported in the first half of 2025. Available liquidity stood at 96.7 million euros as of June 30, 2026, down from 103.1 million euros at the end of 2025.
DBAG allocated 90.5 million euros to new investments during the period, completing seven transactions: three acquisitions and four disposals. Notable exits included the divestments of duagon and Kraft & Bauer from DBAG Fund VII. The company is actively pursuing further disposals to raise capital for new investments in high-growth sectors.
Among the new investments, DBAG Fund VIII acquired a majority stake in Hipp Technology Group through a management buyout, strengthening its presence in the healthcare sector. DBAG also acquired a minority stake in Bug Bounty Switzerland, a pioneer in AI-driven cybersecurity testing, using its own balance sheet. Additionally, DBAG ECF IV agreed to acquire a majority stake in TNL Group, a service provider supporting the energy transition through environmental permitting and construction services for power lines, wind and solar projects, and traffic infrastructure. The TNL transaction is expected to close in the third quarter of 2026.
Despite macroeconomic headwinds, DBAG's portfolio companies performed well operationally, making positive overall contributions to gross gains and losses on measurement and disposal. However, this was insufficient to counter the negative impact of declining valuation multiples for peer group companies, which are used to value DBAG's portfolio.
DBAG returned 26.1 million euros to shareholders via dividends and share buybacks in the first half of 2026. The company reaffirmed its intention to continue a shareholder-oriented distribution policy, aiming for a cash dividend of at least 1.00 euro per share annually and regularly reviewing potential share buyback programs.
The adjustment to the 2026 forecast, made on July 16, 2026, was prompted by declining valuation multiples for peer group companies. Geopolitical challenges, including conflicts in the Middle East, disruptions to global trade routes, and tariff announcements, have dampened growth in Europe and pressured Germany's export-driven economy. While AI-driven software solutions offer productivity gains for many IT businesses, they also threaten others, contributing to lower 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. 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."
