Deutsche Beteiligungs was sold after it hit our target price. This target price involved valuing the its portfolio of German company stakes at or close to market value, and to warrant holding the stock for longer, we thus had to build in some optimistic assumptions either on stock market valuations or on the company's ability to find additional opportunities. Whilst we believe there are likely to be plenty of good opportunities remaining in the German mittelstand, the concern for us would be the ability for Deutsche Beteiligungs to ever realise this value if the re-sale market for these stakes (the stock market) was to contract. With the valuation full and the risk that the company may not be able to realise some of its investments going forward, we thus took the prudent approach and sold, banking substantial profits in the process.
Deutsche Beteiligungs AG is a leading German private equity firm, specialising in mid cap "old economy" companies in Germany's Mittelstand (transaction values are typically EUR50-250m in size). The company has been operating for 40 years and has a 15% share in the German MBO market, making it one of the market leaders despite its smaller size. The stock is trading at a 30% discount to the fair value of its portfolio.
| Sedol |
Type |
Price |
Date |
| 5066331 |
Sell |
EUR 24.78 |
23/03/2007 |
| 5066331 |
Sell |
EUR 23.59 |
21/03/2007 |
| 5066331 |
Sell |
EUR 23.147 |
16/03/2007 |
| 5066331 |
Sell |
EUR 23.754 |
26/02/2007 |
| 5066331 |
Sell |
EUR 23.70 |
23/02/2007 |
| 5066331 |
Buy |
EUR 14.446 |
11/01/2006 |
| 5066331 |
Buy |
EUR 12.748 |
27/06/2005 |
| 5066331 |
Buy |
EUR 12.306 |
10/06/2005 |
| 
