Deutsche Beteiligungs, the listed German private equity firm, has closed DBAG Fund IV, the first fund raised by the firm to seek commitments from institutions that do not hold shares in the listed business.
The fund, which had an original target of E250m, fell short of this figure, raising a total of E228m. The firm said the fund secured commitments from institutional investors in Germany, Europe, the United States and Asia. Details of the fund’s investors have not been disclosed, although 75 per cent of the capital originated in Germany.
Despite falling short of the original E250m target, Deutsche Beteiligungs spokesperson Wilken von Hodenberg said the firm was pleased with the outcome. “The fact that experienced investors have entrusted E228m to us in this currently difficult environment is a mark of distinction for Deutsche Beteiligungs AG and its investment team.” said Wilken von Hodenberg, spokesperson for Deutsche Beteiligungs.
The new fund will make investments over the next three to five years, investing between E10m to E60m in industrial Mittelstand companies with turnover of between E50m to E500m and based in German-speaking countries. The firm said in a statement that the fund’s capital will be invested over the next three to four years.
To date, the fund has invested in three companies: AKsys, an automotive supplier, the engineering group Hochtemperatur Engineering, and Casco Surfaces, a manufacturer of surface material solutions for the furniture and flooring industries; an agreement has been reached on a fourth investment (Babcock Borsig Power Service), which is yet to complete.