Deutsche Beteiligungs AG (DBAG) reported a mixed first half of 2026, marked by strong transaction activity and robust portfolio company performance, but also by declining valuation multiples that led to a downward adjustment of its full-year forecast. The Frankfurt-based private equity investor announced seven transactions, including three new investments and four disposals, while allocating 90.5 million euros to new investments. Despite the operational progress, the company's net asset value (NAV) per share fell to 33.65 euros as of June 30, 2026, down from 36.37 euros at the end of 2025, primarily due to lower valuation multiples for peer group companies.
DBAG's portfolio companies demonstrated resilience amid macroeconomic headwinds, making positive overall contributions to gross gains and losses on measurement and disposal. However, these gains were more than offset by the decline in valuation multiples, resulting in a net income of -34 million euros for the first half, compared to 8.2 million euros in the same period last year. The EBITA from Fund Investment Services stood at 6.8 million euros, slightly down from 7.1 million euros in H1 2025. The company's available liquidity remained strong at 96.7 million euros as of June 30, 2026.
The transaction activity in the first half included three acquisitions. DBAG Fund VIII acquired a majority stake in Hipp Technology Group via a management buyout, expanding its presence in the healthcare sector. As a Long-Term Investment, DBAG acquired a minority stake in Bug Bounty Switzerland, a pioneer in AI-driven cybersecurity testing that protects organizations such as the Swiss National Cyber Security Centre. Additionally, DBAG ECF IV agreed to acquire a majority stake in the TNL Group, a service provider supporting the energy transition through environmental permits and construction services for power lines, wind and solar projects, and traffic infrastructure. This transaction is expected to close in the third quarter of 2026.
On the disposal side, DBAG completed four exits, notably the divestments of duagon and Kraft & Bauer from DBAG Fund VII. The company continues to pursue further disposals to raise capital for new investments. In line with its shareholder-oriented distribution policy, DBAG returned 26.1 million euros to shareholders through dividends and share buybacks in the first half. The company aims to maintain a cash dividend of at least 1.00 euro per share annually and will regularly evaluate additional buyback programs.
The decision to adjust the 2026 forecast, made on July 16, 2026, was driven by declining valuation multiples for peer group companies, a consequence of geopolitical tensions and their impact on global trade. Conflicts in the Middle East, disruptions to key sea routes, and the introduction of new tariffs have dampened growth in Europe and pressured Germany's export-driven economy. While AI-driven software solutions are boosting productivity for many IT business models, they threaten others, leading to lower valuation multiples in certain sectors.
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 focus on structural growth areas and disciplined capital allocation positions it to navigate the current market volatility. The company's ability to execute transactions and return capital to shareholders underscores its commitment to long-term value creation. As the economic landscape evolves, DBAG's strategic investments in healthcare, cybersecurity, and energy transition are expected to drive future performance.
