DBAG closes €1bn fund

DBAG Fund VII is larger than its predecessor, DBAG Fund VI, which closed in 2012 with commitments of €700m. 

The vehicle consists of two sub-funds: an €800m principal fund, of which €183m come from listed entity DBAG for its co-investments, and a supplementary €200m top-up fund, which will be used for larger transactions. Legal counsel was provided by P+P Pöllath + Partners.

DBAG's co-investment commitment totals €200m, an increase of 50% compared with DBAG Fund VI.

The investor also announced that its Expansion Capital Fund (ECF), a programme launched in 2011 for growth financings in owner-managed German Mittelstand companies, will now also invest in smaller buyouts to expand DBAG's investment range.

Investors
The fundraising for the oversubscribed vehicle took place in less than three months, with commitments from 31 LPs, 80% from existing investors and 20% from new ones.

The geographical origin of commitments is very similar to that of DBAG Fund VI, with 23% coming from the US and 14% from Germany. Investors from other European countries committed 51%, while the remaining commitments have been made by investors from Asia (12%). The largest group of LPs are pension funds, accounting for 38%, followed by funds-of-funds with 17% and insurance companies with 10%.

Investments
The fund will be able to invest equity capital of up to €200m in a single buyout. DBAG Fund VII will typically invest in companies with an enterprise value of between €75-250m, a segment that consists of companies generating annual revenues of between €50-500m. 

The investor plans three investments per year and 10-12 in total.

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• Topics
• Funds
• Buyout
• DACH
• Germany
• Deutsche Beteiligungs AG