Disproportionate profit share on the part of investment managers in the performance of a managed or advised fund, if certain conditions (realisation of the investors’ invested capital plus a minimum return of eight percent) are met.
Indicator used to determine a company‘s financial position and frequently also its earnings position: the flows of funds within a period resulting from the difference between the inflow and outflow of cash.
End of subscription period for a (private equity) fund.
DBAG invests in portfolio companies alongside the DBAG funds. The ratio of DBAG’s co-investment and the other investors in a fund is fixed for the fund’s entire term; DBAG holds a minority interest in the respective investment.
Standards for the management and supervision of companies defining the spheres of accountability for Shareholders, Management Boards and Supervisory Boards of public companies. These standards aim at early identification of undesirable developments and the prevention of critical situations in a company.
Directors and Officers’ Liability Insurance; an insurance for members of the Supervisory Board and Board of Management of legal entities covering legal liabilities for wrongful acts committed in their capacities as Management and Supervisory Board members.
German stock market index; benchmark for the development of the capital market
Sum of investment opportunities offered to an investment company. Deutsche Beteiligungs AG endeavours to have early knowledge of investment opportunities; it uses its closely-knit network to that end.
Consultant to a securities issuer. Designated sponsors ensure a minimum amount of liquidity of a certain security traded on the stock exchange by inputting immediately marketable buy or sell offers with a low spread into the trading system for that security, consecutively or upon request.
Procedure used to measure the value of an enterprise, deter-mined by the sum of discounted cash flows expected in the future. Discounting is performed using an interest rate for a long-term risk-free investment plus a risk premium.
Diligent, systematic and detailed collection, investigation and analysis of data on a target company preceding a commitment to invest. The purpose is to determine the strengths and weak-nesses of that company as well as the risks involved.
Abbreviation for earnings before interest and taxes. EBIT is an earnings indicator, determined from the net income before taxes, the net interest and extraordinary earnings. Eliminating these factors provides a more comparable statement on a company’s opera-tive performance, independent of its individual equity structure.
The residual interest in the assets of a company after deducting all its liabilities.
The sale of an investment from a financial investor’s portfolio. Principally, there are three exit routes: trade sale (sale to another company), initial public offering (stock market listing) or secondary buyout (sale to another financial investor). Deutsche Beteiligungs AG considers all three variants in realising its investments.
Minority stake in a company – the majority remains with the past owner. Both early-stage and established companies may seek expansion capital to finance their next phase of growth.
Efforts to communicate the corporate information required to assess a certain security to all market participants simultaneously.
The current amount for which an investment could be ex-changed between knowledgeable, willing and independent parties. According to IFRS (see below) accounting rules, finan-cial assets such as corporate investments are to be valued based on this concept.
The sum of all shares of a company not held in firm hands, or, in other words, the marketable portion of a company’s stock. Funds of FundsInvestment funds that invest in other funds.
The soliciting of equity commitments to a private equity fund.
Segment governed by the statutory minimum requirements of the Official or Regulated Unofficial Market.
Short for “International Financial Reporting Standards” (formerly IAS). Accounting rules that have been obligatory for the consolidated accounting of listed companies in the European Union since 2005.
Activities directed toward promoting relationships between a company and its existing or potential investors.
In a syndicate of investment companies generally the investor holding the largest share, who takes charge of organizing the financing and coordinating the transaction. In a fund investment, the investor holding the largest interest.
Period of time during which existing shareholders commit not to sell shares from their holdings following an IPO. This is aimed at protecting new shareholders from downslides in stock prices caused by the sale of large blocks of shares after a new issue.
Global private equity performance index; the LPX50 consists of the 50 largest quoted private equity companies worldwide, measured by their market capitalisation. The shares of Deutsche Beteiligungs AG are a constituent of the LPX50.
Short for “Mergers and Acquisitions”. General term for such transactions in the corporate sector.
The takeover of a company by its management with the support of one or more financial investors who largely finance the transaction and assume the majority of the voting rights or share capital.
Current stock market value of a class of shares: number of issued shares multiplied by the current price.
The market for investment transactions is divided into three segments: transactions with a value of less than 50 million euros are considered “small“; the mid-market segment comprises transactions valued from 50 to 250 million euros; transactions with a value of more than 250 million euros form the upper market segment.
Procedure used to value an enterprise. Expressed as the product of an indicator (e.g. earnings) and a multiple derived from current market prices. That multiple is based on the quotient of the market prices for a group of similar companies and their respective performance indicators.
Total value of all tangible and intangible assets of a company, less its liabilities. Corresponds to equity.
(Amtlicher Markt) Primary tier of the German Stock Exchange that sets high standards for admittance.
Purchase of new shares without the employment of own capital; a shareholder sells exactly as many subscription rights in a regular capital increase as would be required to exercise the remaining pre-emptive rights and pay the issue price using the proceeds from the sale of the rights. After an Operation Blanche, the absolute amount of the shareholder’s investment in the shares of the respective company remains unchanged; his relative share of the capital stock, however, will decrease.
Also: co-investment fund. A third-party fund that co-invests (usually by a fixed percentage) alongside another investor; at Deutsche Beteiligungs AG: the funds managed by Deutsche Beteiligungs AG
A group of companies similar in terms of industry, structure, products and revenues, used for comparison purposes.
Here: all the holdings of an equity investment company.
Segment on the German Stock Exchange with high standards of transparency. Admission to the Prime Standard is a prerequisite for inclusion in one of the stock indices, such as the S-Dax.
Delisting of a formerly quoted company; also referred to as taking private.
Selection index of the German Stock Exchange for smaller companies from classical sectors of the economy. Comes after the stocks indexed in the M-Dax and consists of 50 stocks admitted to the Prime Standard of the Official Market or Regulated Unofficial Market.
An investment that is sold by a financial investor to another financial investor.
A silent partnership usually having a fixed term, fixed interest rate and defined performance- related components; not subject to public disclosure.
The splitting off of a division or subsidiary from a large corporation.
A security granting the purchase of a company’s stock at a fixed price (or a price determined on the basis of a certain scheme). At Deutsche Beteiligungs AG – similar to many other quoted companies – a part of the staff’s emoluments.
A record of performance by a company or an entrepreneur or manager.
An exit variant: the sale of an investment to a company operating in the same branch of industry that wants to complement its portfolio, expand its market presence or achieve other strategic goals.
Purchase price of the debt-free enterprise.
The restructuring of a business to achieve profitability again. In some cases, the business will start off anew with a new management and/or a revised product range.