Deutsche Beteiligungs AG (DBAG) reported a mixed first half of 2026, with robust operational performance from its portfolio companies offset by declining valuation multiples for peer group companies, prompting the firm to adjust its forecast for the year. The company announced seven transactions in the period, including three new investments and four disposals, and returned 26.1 million euros to shareholders via dividends and share buybacks.
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. The decline was attributed to lower valuation multiples for peer group companies, which more than offset the operational progress achieved by portfolio companies. Net income for the first half was -34 million euros, compared to 8.2 million euros in the same period last year, largely driven by valuation-related effects. EBITA from Fund Investment Services came in at 6.8 million euros, slightly below the 7.1 million euros reported in H1 2025.
DBAG allocated 90.5 million euros to new investments during the first six months, completing three acquisitions and four disposals. Notable exits included duagon and Kraft & Bauer from DBAG Fund VII. The firm said it is working on further disposals to raise capital for investing in high-growth companies. On the acquisition side, DBAG Fund VIII acquired a majority stake in Hipp Technology Group, a healthcare sector company, via a management buyout. Additionally, DBAG acquired a minority stake in Bug Bounty Switzerland, an AI-driven cybersecurity testing firm, as a long-term investment financed entirely from its own balance sheet. The Swiss company protects organizations such as the Swiss National Cyber Security Centre. Furthermore, DBAG ECF IV agreed to acquire a majority stake in TNL Group, a service provider that supports the energy transition by securing environmental permits and providing construction services for power lines, wind and solar projects, and traffic infrastructure. The transaction is expected to close in Q3 2026.
Despite the challenging environment, DBAG’s portfolio companies withstood macroeconomic headwinds and made positive overall contributions to gross gains and losses on measurement and disposal, including in the IT services and software sector. However, this was insufficient to offset the negative impact of declining valuation multiples.
The company maintained its shareholder-oriented distribution policy, returning 26.1 million euros through dividends and buybacks. Looking ahead, DBAG aims to pay a cash dividend of at least 1.00 euro per share annually and will regularly evaluate share buyback programs.
The broader context includes geopolitical challenges such as the Middle East conflict, disruption of key sea routes, and tariff announcements, which are straining global trade and dampening growth in Europe, particularly impacting Germany’s export-driven economy. While AI-based software solutions are boosting productivity for some IT businesses, they threaten others, leading to lower valuation multiples for peer companies and negatively affecting DBAG’s measurement results.
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.”
