Original-Research: Deutsche Beteiligungs AG (von NuWays AG): BUY

Classification of NuWays AG to Deutsche Beteiligungs AG

Company Name:	Deutsche Beteiligungs AG
ISIN:	DE000A1TNUT7
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 36
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q3 out: Multiples turn, exits keep coming

Q3 NAV per share came in at € 33.84, up 0.6% qoq (Q2: € 33.65; YE25: € 36.37) and comfortably inside the FY26 guidance corridor of € 32-36 (eNuW: € 34.1). Adding back the € 1.48 per share distributed via dividend and buyback this year, NAV per share would be € 35.32; group NAV stood at € 584m. After two quarters in the red, Q3 net income turned positive at € 3.7m (9M: € -30.3m), though still burdened by provisions for carried interest, a by-product of value creation in the funds.

Every exit backs the NAV. In 9M, DBAG realised c. € 100m of its c. € 700m portfolio (c. 14%), and all sold above their carrying values. The latest example, the Green Datahub data centre sale after quarter-end, achieved 1.35x. Importantly, management showed confidence that the portfolio company could be sold at least at book value and sees 1-2 further exits in advanced talks for Q4/early Q1, which could lift FY26 realisations to € 150-180m despite a difficult M&A market. That would equal 21-26% of the portfolio, ahead of the c. 20% within twelve months the CEO targeted a year ago. The Fund VI tail is shrinking too: after Silbitz (sold to VTC in August) and Polytech, only Telio remains, with an exit likely in sight.

Multiples turn, operations stay strong. Q3 contributed a gross valuation and disposal result of € 17.4m, offsetting about a third of the H1 hit (9M: € -31.6m), as listed software peers, the benchmark for 28% of the portfolio, recovered. The group's IT services and software holdings, e.g. congatec, delivered strong earnings growth, making an exit in the near term likely (eNuW). On the investment side, the minority in thermal-imaging specialist Vected adds a defence/dual-use asset to the long-term investment strategy, while portfolio companies kept consolidating their niches with 13 add-ons during the first nine months.

Fee business and private debt on track. Fund Services EBITA came in at € 3.3m in Q3, lifting 9M to € 10.1m (9M 25: € 11.2m), already inside the reiterated € 9-11m corridor and in line with our FY estimate. The private debt arm (ELF Capital) adds stability: all loans are performing at an aggregate interest rate of c. 10%.

Fund IX on course for mid-2027. Management expects the first close of the new fund generation around mid-2027. The very good performance of Funds VII and VIII gives DBAG a strong track record to market, and every exit adds to the cash it will commit alongside the new fund. Fund IX is the key lever for the € 11-17m FY28e EBITA guidance and the € 41-48 mid-term NAV per share target.

In sum, the realisations of this year turn the NAV into hard evidence: assets are being sold at or above book, more exits are lined up and the fee line sits safely within guidance. With the share at € 19.36, i.e. a 44% discount to Q3 NAV, the market still prices in markdowns that DBAG’s exits should continue to disprove. The company’s base dividend of € 1.00 per share currently implies a yield of 5.1%, underpinning the attractive valuation. With a fresh AGM authorisation in place, renewed buybacks at this discount would be highly accretive. BUY with an unchanged € 36 PT based on SOTP (DCF for Fund Services + discount to our NAV per share estimate at year-end).

You can download the research here: deutsche-beteiligungs-ag-2026-11-06-previewreview-en-8b124
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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