Edison Analyzes Deutsche Beteiligungs Amid Market Challenges

Edison Investment Research has issued a report on Deutsche Beteiligungs (DBAG). In the first half of 2025, DBAG reported a 1.9% NAV total return. This was influenced by higher valuation multiples but mitigated by portfolio earnings growth and increased net debt. The company increased its investment activity, involving three private debt investments and a new long-term minority investment, FinMatch, funded from its balance sheet. Additionally, a follow-on private equity investment was made in an existing portfolio company.

Despite this progress, exits have been more challenging, with only one expected realization by the end of the year, down from the earlier projection of up to four. Currently, DBAG's shares are trading at a significant 30.3% discount to the last reported NAV of its private market investments. The shares also offer exposure to a fund services business that generates recurring earnings, projected between €10-15m for FY2025.