Deutsche Beteiligungs - New valuations look conservative

Deutsche Beteiligungs (DBAG) has updated its portfolio values, which led to a considerable revaluation loss in Q220, and in turn a net loss for H120 at €76.7m (or €5.10/share). Unlike many of its listed private equity peers, DBAG has already reflected in its NAV both the reduced long-term earnings prospects of its companies and lower peer multiples. This contributed to DBAG’s relative underperformance with one-year NAV total return (to end-March) at -16.2% vs LPX Europe NAV at +8.7%. DBAG’s fund services posted a €3.5m profit in H120 covering 88% of other ongoing costs. The eighth PE fund was closed with €1.1bn in commitments, but is not expected to start investing and collecting fees in FY20.