Deutsche Beteiligungs AG (DBAG) reported a mixed first half of 2026, characterized by robust operational performance from its portfolio companies and strong transaction activity, but also by declining valuation multiples for peer group companies, which led to a downward adjustment of its forecast for the financial year 2026.
In the first six months, DBAG agreed upon or closed seven transactions: three acquisitions and four disposals, including notable exits of duagon and Kraft & Bauer from DBAG Fund VII. The company allocated 90.5 million euros to new investments, with a focus on high-growth sectors. Among the acquisitions, DBAG-advised DBAG Fund VIII acquired a majority stake in Hipp Technology Group via a management buyout, strengthening its 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 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, with the transaction expected to close in Q3 2026.
Despite these positive developments, the company's 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. Net income totalled -34 million euros in H1 2026, compared to +8.2 million euros in the prior-year period, driven largely by valuation-related effects. EBITA from Fund Investment Services amounted to 6.8 million euros, slightly down from 7.1 million euros in H1 2025. Available liquidity stood at 96.7 million euros as at 30 June 2026.
The decline in NAV was primarily due to lower valuation multiples for peer group companies, which more than offset the positive operational contributions from portfolio companies. DBAG's portfolio companies demonstrated resilience, with positive overall contributions to gross gains and losses on measurement and disposal, including in the IT services and software sector. However, this was not sufficient to counteract the negative impact of declining multiples.
In response to these market conditions, DBAG adjusted its forecast for the financial year 2026 on 16 July 2026. The company cited fundamental geopolitical challenges, including the armed conflict in the Middle East, disruption of key sea routes for global energy security, and the constant announcements of higher tariffs, which are straining free global trade and dampening growth in Europe. These factors have exerted pressure on Germany's export-driven economy and affected valuation multiples.
Despite the challenges, DBAG remains committed to its shareholder-oriented distribution policy, having returned 26.1 million euros to shareholders via dividends and share buybacks in H1 2026. The company aims to continue paying a cash dividend of at least 1.00 euro per share annually and will regularly examine possible share buyback programmes.
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."
