Deutsche Beteiligungs - Doubling down on investment opportunities

Deutsche Beteiligungs (DBAG) reported a c 4% NAV total return in 9M24, supported primarily by higher valuation multiples on the back of more benign public markets and the successful realisation of in-tech. DBAG’s management has recently experienced a significant increase in deal flow, which we attribute to the first signs of a recovery in global M&A activity, reduced competition (as evidenced by two of its competitors no longer pursuing new investments), as well as cross-deal flow from the recently acquired ELF Capital Group. This has encouraged the company to issue a €100m convertible bond to further boost its dry powder.