Capital management company (Kapitalverwaltungsgesellschaft – KVG)
Companies with their registered office and headquarters in
Germany whose business operations are aimed at managing
domestic investment assets, EU investment assets or foreign
alternative investment funds. Only one capital management
company can be responsible for each investment fund category,
which is also answerable for compliance with the rules
of the Capital Investment Code (KAGB). DBAG is a registered
capital management company under the KAGB.
Carbon Disclosure Project (CDP)
Non-profit organisation whose objective is worldwide transparency
regarding environmental data. Within the scope of the
CDP, DBAG issues detailed annual reports on its greenhouse
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.
Corporate Governance Code
The German Corporate Governance Code lists key statutory
rules and regulations on the management and oversight of
German listed companies and contains internationally and
recognised standards of good responsible corporate
governance by way of recommendations and suggestions.
Cost of equity
Calculatory return on the equity employed. Similar to providers
of borrowings, equity providers (shareholders) expect a return
on their invested capital. This is usually achieved through share
price increases and distributions. The cost of equity can be
determined by various models and generally exceeds that for
borrowings, since equity capital entails greater risk. DBAG uses
the capital asset pricing model (CA PM) to determine the cost
of equity. For this method, a company-specific risk premium
calculated using a mathematical formula is added to a risk-free
Short for “Customer Relationship Management System”. An
ED P software used to document, organise and manage a company’s
interaction with customers.
Short for DBAG Expansion Capital Fund, which is managed
by DBAG and alongside which DBAG co-invests in growth
Funds that are managed and/or advised by Deutsche
Beteiligungs AG, alongside which DBAG co-invests. The
investors commit a certain amount of capital that
is drawn down stepwise as soon as suitable investment
opportunities arise. Upon an investment’s ultimate disposal,
the proceeds are distributed to the investors.
Investment opportunities available to an investment company
such as DBAG.
The process of seeking and selecting potential portfolio
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 weaknesses
of that company as well as the risks involved.
Short for “Environmental, Social and Governance”. DBAG
reports on these aspects.
Disposal of an investment from a financial investor’s portfolio.
Principally, there are three exit routes: trade sale (sale to a company),
initial public offering (stock market listing) or secondary
buyout (sale to another financial investor). DBAG 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.
More information on expansion financing can be found at
The current amount for which an investment could be exchanged
between knowledgeable, willing and independent
parties. According to IFRS (see below) accounting rules, financial
assets such as corporate investments are to be valued based
on this concept.
German Capital Investment Code (Kapitalanlagegesetzbuch – KA GB)
Legal framework for managers of open- and closed-end funds.
Short for “International Financial Reporting Standards” (formerly
IA S). Accounting rules that have been obligatory for the
consolidated accounting of listed companies in the European
Union since 2005.
Investment entity (as in IF RS 10)
According to the pronouncement by the International Accounting
Standards Board (IA SB), a company which, by definition, is
an investment entity must not consolidate its subsidiaries, but
must carry them at fair value through profit or loss. Subsidiaries
that provide services related to the investment activities of the
parent company are required to be consolidated. As a parent
company, DBAG meets the typical characteristics of an investment
entity in terms of IFRS 10.
Short for “Internal Rate of Return”. Financial mathematic method
of determining the return on an investment.
A specific cooperative arrangement in which two or more parties
establish a legally independent business in which each of
the participants has a right to net assets. The parties jointly bear
the financial risk of the investment and jointly exercise control
over the enterprise.
Short for “Mergers and Acquisitions”. General term for such
transactions in the corporate sector.
Management buyout (MBO)
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
Hybrid capital ranking between voting capital and first lien
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 300 million euros; transactions
with a value of more than 300 million euros form the upper
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.
Net asset value
Total value of all tangible and intangible assets of a company,
less its liabilities. Corresponds to equity.
A group of companies similar in terms of industry, structure,
products and revenues, used for comparison purposes.
All of the investments of DBAG.
Method of measuring the creditworthiness or credit quality of
debt issuers or securities. Credit ratings are usually issued by
credit rating agencies.
Replaces part of the relatively expensive equity tied in a company
by lower-cost debt. The aim is to optimise the capital structure.
The free funds are then distributed to the shareowners.
For transactions in the corporate sector, an existing loan is substituted
for a new loan. For example, in an acquisition a shareholder
loan can be replaced – or refinanced – by acquisition
Return on net asset value per share (NAV)
Key target and performance indicator of DBAG. The closing
NA V per share at the end of the financial year is set against the
opening NA V per share at the beginning of the financial year,
less dividends paid in the course of that year.
An investment that is sold by a financial investor to another
Term used in the IFRS. An entity that has been designed so that
voting or similar rights are not the dominant factor in deciding
who controls the entity.
German Special Investment Company Act (Gesetz über
Unternehmensbeteiligungsgesellschaften –UBGG); in 1985,
Deutsche Beteiligungs AG was the first firm to be recognised as
a special investment company. This law, for example, exempts
companies – subject to certain conditions – from municipal
trade tax and is aimed at creating indirect access to the capital
market for mid-sized companies.
A type of credit facility in which first-lien and second-lien
are combined in one tranche.