Deutsche Beteiligungs at second close

The German private equity firm has raised E180m for its fourth fund ahead of a final close at the end of the summer.

Deutsche Beteiligungs, the German private equity firm has held a second close on DBAG Fund IV at E180m. The current fundraising campaign is the first time that non-shareholders are invited to become limited partners in the fund for the first time.


The company, Germany’s oldest private equity house, launched the fund last year. It is planning to invest in E50m to E500m turnover industrial Mittelstand companies in German-speaking countries.


Since last October, when the firm held a E120m first close, the fund has received a further E59m in commitments from institutional investors. A Deutsche Beteiligungs spokesperson declined to give details of the fund’s limited partner base, but said the firm was confident of reaching its E250m target by the late summer.


The firm will invest chunks of up to E60m of equity in individual transactions from DBAG Fund IV, and plans to invest up to E100m annually.


Atlantic Pacific is acting as placement agent for the fundraising.


This week, Deutsche Beteiligungs also published its results for the first six months of the financial year, registering slightly positive earnings, although the fair value of the portfolio of Deutsche Beteiligungs declined by twelve percent to E11.39 per share.


“Uncertainty concerning the development of the economy is still limiting exit opportunities,” said Wilken von Hodenberg, spokesman for the firm’s board of management. “Since the stock exchange has hardly been available as an exit channel for the last two years either, the buyer side of the market almost exclusively consists of financial investors.”


Last month, the firm led the E114m management buyout of Casco Impregnated Papers from Akzo Nobel, alongside Harvest Partners, the US private equity firm.