DEEN

FOR FUND INVESTORS

DBAG funds pool the assets of German and international institutions – pension funds, funds of funds, banks, foundations, insurance companies or family offices. These assets constitute the largest part of our capital base. The DBAG funds invest on their own account. The contractual terms at which they do so are aligned to the principles found in the private equity sector.

€2,192bn
committed to five funds since 2002
79%
of commitments by international investors
87%
of commitments by investors who are invested in two or more DBAG funds
50+
investors

Each of the DBAG funds consists of several entities to account for country-specific and regulatory requirements, among other things. Investments by members of the DBAG investment team are also made through separate entities. The funds invest together with Deutsche Beteiligungs AG and the members of the investment team at a contractually fixed co-investment ratio for each fund. Co-investments by DBAG alongside the funds are also made via a separate entity in each case. This entity invests at the same terms and in the same instruments. Thus, the investment ratio between DBAG and the other investors is fixed for the lifetime of a fund. This structure ensures an identity of interest between the investors in the funds and DBAG with its shareholders.

Deutsche Beteiligungs AG currently advises the assets of more than 50 investors in five private equity funds. This includes the assets of the two funds that are presently investing: DBAG Fund VII and DBAG ECF.

DBAG Fund VII closed in September 2016 with commitments of 1,010 million euros. It has been investing since December 2016. DBAG ECF has been investing since May 2011; the investment period of its first new vintage starts in June 2017.

We maintain a close, regular dialogue with our investors.

INVESTORS: TYPE

INVESTORS: REGIONS

The charts above consider the investors of DBAG ECF First New Vintage and DBAG Fund VII (as of January 2017).

OUR INVESTMENT CRITERIA

The DBAG funds invest in mid-market companies, that is, those with annual revenues from 50 to 500 million euros or a debt-free enterprise value of between 50 to 250 million euros. Most investments lie within this range; the DBAG funds are able to provide equity capital investments from 30 million euros up to 200 million euros – thereby also permitting smaller or larger transactions in individual cases. In that segment, we seek companies with strong positions in their (possibly small) markets. Our geographic focus is on the DACH region.

To successfully continue their development, our portfolio companies need seasoned, entrepreneurially-driven managements. We attach importance to having the members of the management team co-invest in the takeover. That ensures an identity of interest.

Our knowledge of business models is particularly deep in mechanical and plant engineering, among automotive suppliers, industrial services providers and manufacturers of industrial components. Most of our transactions originate from these four core sectors.

The portfolio companies have proven business models. They can exploit their potential to a stronger extent, for instance, by improving their strategic position or their operational processes. Of key significance is a market leadership position, experienced managements, strong innovative capacity and future-viable products. We do not invest in start-ups or early-stage businesses.

DBAG FUNDS

DBAG fundsLaunchedSizeStatus
DBAG FUND VII2016€1,010mnactive
DBAG ECF FIRST NEW VINTAGE2016€85mnactive
DBAG ECF
2011€213mnInvestment period terminated
DBAG FUND VI2012€700mnfully invested
DBAG FUND V2006€539mnfully invested
DBAG FUND IV2002€328mnrealised
DBG FONDS III1998DM283mnrealised
DBG FONDS II1975DM139mnrealised
DBG FONDS I1965DM473mnrealised

BUSINESS MODEL

Deutsche Beteiligungs AG advises the DBAG funds with its investment team and receives fees for these services.

Contact

Jürgen Fischer
Jürgen Fischer

Senior Vice President, Head of Fund Investor Relations

Jürgen Fischer
Name:
Jürgen Fischer
Telephone:
+49 69 95787-322
E-Mail:

Jürgen Fischer

Senior Vice President, Head of Fund Investor Relations

Jürgen Fischer joined DBAG in 2011.

Prior to that, he worked at Union Investment Institutional GmbH focusing on product management and at Feri Trust as an Investment Director responsible for primary investments in private equity funds. He started his career as an analyst with a captive growth capital fund.

Jürgen Fischer studied business administration at the Philipps University Marburg and is CFA Charterholder.

Jürgen Fischer

Senior Vice President, Head of Fund Investor Relations

+49 69 95787-322
juergen.fischer@dbag.de

THREE QUESTIONS FOR JÜRGEN FISCHER

  1. When DBAG initiates a new fund, many investors that were previously invested in DBAG funds commit new capital. What do investors like about DBAG?

    They are clearly satisfied with how we put their capital to work in the precedessor funds. Investors consider it important that their capital is invested as agreed at the start of a fund’s term, which, after all, is at least ten years. For example, they expect that we will invest within the agreed period and will achieve the returns that were envisaged and that the fund will unvaryingly adhere to its investment strategy.
  2. Who can invest in DBAG funds?

    For regulatory reasons, only professional investors can become partners in the funds. Nearly all investors have an extensive programme for commitments to private equity funds – regularly investing, for example, in funds focused on certain geographical regions, sectors, company sizes and investment types. To limit the number of investors in an individual fund, a minimum amount may be specified that each investor must commit.
  3. When will DBAG be raising its next fund?

    That largely depends on the progress of the two funds from which we are currently investing. DBAG Fund VII entered into its first two investments in spring 2017. In comparison, the investment period of DBAG Fund VI lasted about four years, that of DBAG Fund six years. DBAG ECF will start a new investment period in June 2017, which will initially run until the end of 2018.

Do you have questions for Jürgen Fischer?