Deutsche Beteiligungs AG: Navigating Operational Uncertainties

Deutsche Beteiligungs AG's (DBAG) NAV declined to €627 million in H1 2025, prompting a year-end forecast cut to €625-665 million. The NAV per share is now anticipated between €35 and €38, a slight drop from previous expectations. Achieving the upper range requires successful exits amid rising operational uncertainties. While a valuation uplift of €34 million was noted from two portfolio companies, this was partially offset by lower performance and outlook, resulting in a net value change of just €20 million.

DBAG made strategic moves by acquiring a minority stake in fin-match, a platform for financing small to mid-sized businesses. This aligns with their sourcing channels for Private Debt. Within its portfolio, congatec expanded its market share by acquiring JUMPtec. Despite a decline in H1 income from Fund Services to €24 million, management increased its FY25 segment EBITA guidance to €10-15 million.

DBAG’s capital allocation remains focused on shareholder value, initiating a €20 million buy-back program. Despite market slowdowns and weaker performance in segments, DBAG's robust income from Fund Services and attractive shareholder returns justify a BUY rating.