Deutsche Beteiligungs AG: Solid FY25 Results and Future Prospects

Deutsche Beteiligungs AG (DBAG) has reported solid financial results for FY25, hitting the midpoint of its NAV/share guidance and the higher end of its EBITA Fund Investment Services range. The firm anticipates robust deal flow in the coming months due to heightened interest in traditional industries. The NAV/share reached €36.37, a 1.6% increase year-over-year, with a potential rise to €38.44 when considering shareholder returns.

For FY26, DBAG forecasts a NAV/share of €36-40, contingent on successful exits. By FY28, the company expects a NAV/share between €41-48, suggesting a CAGR of 4-9.7%. Despite a dip in FY25 EBITA to €14.3m, mainly due to increased staffing, DBAG anticipates a recovery with the launch of DBAG Fund IX.

DBAG is preparing for exits of mature portfolio companies, particularly ones from older funds. The company's portfolio is now aligned with shifting investor interests toward asset-backed sectors. This positioning could benefit future fundraising as older funds reach end-of-life.

The company has extended its €20m buyback program, enhancing shareholder value with a 35% discount to NAV. DBAG maintains a BUY rating with a target price of €39, supported by its strategy and financial health.