Deutsche Beteiligungs AG is launching the DBAG Solvares Continuation Fund to continue its investment in Solvares Group GmbH, reflecting a strategic move in the German private equity market.

Information on the Target

Deutsche Beteiligungs AG (DBAG) is set to establish a new private equity fund known as the DBAG Solvares Continuation Fund GmbH & Co. KG (the "Continuation Fund"). This fund aims to facilitate ongoing investment in Solvares Group GmbH ("Solvares"), which is currently managed through several affiliated entities within the DBAG group. These entities include DBAG Expansion Capital Fund Konzern GmbH & Co. KG, DBAG Expansion Capital Fund International GmbH & Co. KG, and DBG Advisors Expansion GmbH & Co. KG, collectively referred to as the "Transferor Funds." On August 28, 2024, the Signing Date, DBAG's subsidiaries entered into a Framework Agreement with related parties and independent third parties to initiate the Continuation Fund structure.

The Framework Agreement lays out specific measures, steps, and rights surrounding the establishment of the new fund, characterizing the proposed actions as the "CF Transaction." It includes substantial contractual arrangements such as a share purchase agreement for acquiring a 50.01% stake in Solvares from a third-party seller. The framework aims to delineate the obligations of the involved parties, covering capitalization efforts, capital commitments, and the establishment of agreements essential for the transaction.

Industry Overview

Germany has a robust private equity environment, characterized by high growth potential and strong entrepreneurial spirit. The private equity sector is well-regulated, with mature legal frameworks that ensure transparency and protect investors. The German economy, being the largest in Europe