Deutsche Beteiligungs AG (DBAG) has launched a new private equity fund.
With capital commitments of €1 billion, the new DBAG Fund VII consists of two sub-funds:
– an €800m principal fund, of which €183m come from DBAG for its co-investment, and
– a supplementary €200m top-up fund (DBAG’s share being toitalling €17m), which will be used for larger transactions.
Based on its structure, the fund will be able to invest equity capital of up to €200m in a single larger buyout. DBAG Fund VII will typically invest in owner-managed German mid-market companies with an enterprise value of between €75 and €250m, a segment that consists of companies which generate revenues of between €50m and €500m annually.
The equity capital investments will range from €10m to €30m.
Concurrently, the DBAG Expansion Capital Fund (ECF), a program launched in 2011 for growth financings in owner-managed German “Mittelstand” companies, will now also invest in smaller buyouts, expanding the firm’s investment range further.