Edison Analyzes Deutsche Beteiligungs Amid Economic Changes

In a recent report, Edison Investment Research Limited examined Deutsche Beteiligungs (DBAG) in light of evolving macroeconomic conditions. Despite a 4.8% decline in net asset value per share for the short financial year ending December 2024, DBAG's management sees potential for earnings growth. This optimism stems from successful restructuring efforts and a strategic pivot away from traditional industrial investments.

Improved sentiment towards German equities, in part due to recent parliamentary elections, offers a favorable backdrop. Additionally, the European private equity market is showing signs of revival with increased deal activity and strong fundraising efforts. This context is significant for DBAG, especially given its 24% discount to the NAV of its private markets investments.

DBAG's shares also provide investors with exposure to its fund services business, which is expected to generate recurring earnings between €8 million and €13 million in FY25.