Deutsche Beteiligungs AG (DBAG) demonstrated resilience in the first half of 2026, with robust operational performance from its portfolio companies contributing positively to gross gains and losses on measurement and disposal. However, declining valuation multiples for peer group companies more than offset these gains, leading to a downward adjustment in the company's forecast for the financial year 2026 on 16 July 2026.
The company reported a net asset value (NAV) per share of 33.65 euros as at 30 June 2026, down from 36.37 euros at the end of 2025. Net income for the first half of 2026 totaled -34 million euros, compared to 8.2 million euros in the same period last year, 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.
Despite the challenging environment, DBAG maintained strong transaction activity, agreeing upon or closing seven transactions in the first six months of 2026: three acquisitions and four disposals. Notably, the exits of duagon and Kraft & Bauer from DBAG Fund VII were completed, and the company is actively working on further disposals to raise capital for new investments in high-growth companies.
DBAG allocated 90.5 million euros to new investments during the period. Among the key acquisitions, DBAG-advised DBAG Fund VIII acquired a majority stake in Hipp Technology Group via a management buyout, strengthening its exposure to 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-advised 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. The TNL Group transaction is expected to close in the third quarter of 2026.
Portfolio companies withstood macroeconomic headwinds, with positive contributions from the IT services and software sectors, but this was not enough to offset the negative impact of declining valuation multiples for peer group companies. Fundamental geopolitical changes, including the armed conflict in the Middle East, disruption of sea routes, and tariff announcements, are straining global trade and dampening growth in Europe, exerting pressure on Germany's export-driven economy. While AI-driven software solutions offer productivity gains for many IT business models, they also threaten others, affecting 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."
In line with its shareholder-oriented distribution policy, DBAG returned 26.1 million euros to shareholders via dividends and share buybacks in the first half of 2026. The company aims to maintain a cash dividend of at least 1.00 euro per share annually and will regularly examine possible share buyback programmes.
