Deutsche Beteiligungs: A German Private Equity Firm Excels in Mid-Market Deals

Strategic Insights -

Wilken von Hodenberg, the speaker of the board of management at Deutsche Beteiligungs, believes that German buy-out firms can build long-term credibility and become as large as their foreign competitors. The company, founded in 1965, has focused on German mid-market deals, typically with a transaction value of between €50m and €250m. Deutsche Beteiligungs understands the mind of Germany's extensive "Mittelstand", the famously conservative, largely family-owned companies that built up the country's industrial backbone after the second world war.

Key Takeaways:

  • Deutsche Beteiligungs has raised a total of €230m for its latest fund, a modest amount compared to other European private equity firms.
  • The company focuses on German mid-market deals, typically with a transaction value of between €50m and €250m.
  • Deutsche Beteiligungs has a team of 19 professionals who understand the German market and its sensitivities.
  • The company has a track record of successful deals, including the acquisition of Babcock Borsig Service and its subsequent sale to Bilfinger Berger construction group.
  • Deutsche Beteiligungs has a unique approach to find deals, with only five out of 26 deals resulting from auctions organized by investment banks.
  • Wilken von Hodenberg, the speaker of the board of management, has a background in US and UK banks and has built a German mergers and acquisitions business in the 1990s for Barings, the London investment bank.
  • Deutsche Beteiligungs has a strong focus on local networking, with a team of professionals who speak various regional dialects, such as Schwabisch, Bavarian, or the Cologne accent.
  • The company is well-positioned to take advantage of the growing German buy-out sector, with the number of deals reaching 26 since 1996.

Statistics:

  • Deutsche Beteiligungs has raised a total of €230m for its latest fund.
  • The company has completed 26 deals since 1996.
  • 5 out of 26 deals resulted from auctions organized by investment banks.
  • The acquisition of Babcock Borsig Service was sold to Bilfinger Berger construction group for an estimated amount that quadrupled Deutsche Beteiligungs' investment.
  • The company has a team of 19 professionals who work to find deals in the German mid-market.
  • Deutsche Beteiligungs' speakers and management team have extensive experience in the private equity industry, with Wilken von Hodenberg having worked at US and UK banks, and at other private equity firms.

Sources:

  • The article cites a non-German private equity group as stating that Deutsche Beteiligungs is a "neat company" but not a major player in the industry.
  • The article mentions Franz Muntefering, SPD chairman, as having denounced private equity firms as "locusts" in April 2004.
  • The article quotes an executive at a non-German private equity group as stating that Deutsche Beteiligungs' focus on German mid-market deals is a unique approach.
  • The article mentions Wilken von Hodenberg's background in US and UK banks and his experience in building a German mergers and acquisitions business.
  • The article quotes Wilken von Hodenberg as stating that Deutsche Beteiligungs is best positioned to take advantage of the growing German buy-out sector.