Germany’s oldest private equity firm Deutsche Beteiligungs has doubled its profits for the financial year ending 31 October 2006 to €82.7 million.
Last year’s profit is more than double the previous year’s result of €41.3 million and represents a return on equity per share of 36.4 percent, up from 20.0 percent in 2005. Net asset value per share increased to €19.07, up from €14.64 in 2005.
The company capitalised on three exits in 2006. Pamplona Capital, a UK-based private equity firm, bought Otto Sauer Achsenfabrik in November 2005, and Bauer was floated in July for around €100 million.
The firm also gradually sold down the portfolio of Hochtemperatur Engineering in 2006, with two business units being exited completely, and another two being exited in large part.
During the first three months of the new financial year, the company signed agreements for two new investments. The firm will increase its stake in Homag Group to more than 60 percent, and it will acquire a 75 percent stake in MCE, an Austrian industrial services company.
Dealflow remains strong, the company said. In an overview of the German mid-market, it said the number of deals had increased to 34 deals in 2006, up from 25 in 2005.
It plans to structure two or three more buyouts in 2007. The firm is based in Frankfurt and has about €1 billion under management.