BayBG invests €67.5 million in Bavarian SMEs and innovative startups

BayBG publishes annual results for 2021/22

Munich, March 31, 2023. In the 2021/22 financial year, BayBG increased its new investments by around 18 percent, investing a total of €67.5 million (previous year: €57.6 million) in medium-sized companies and startups. The total investment portfolio reached a new record of €350 million (previous year: €320 million), while net income amounted to €5.3 million (previous year: €14.2 million).

BayBG’s equity financing solutions saw strong demand during the 2021/22 financial year. New investments of €67.5 million were significantly higher than in the previous year. The largest share of these investments, €31.6 million, was allocated to growth and transformation projects, followed by succession financing (€16.1 million) and turnaround financing (€10.9 million). BayBG also invested €5.9 million in innovative startups through venture capital and an additional €3 million in small and young companies and start-ups.

Peter Pauli, Spokesman of the Management Board of BayBG, commented:
“Equity capital provides companies not only with liquidity but also with financial stability. In a persistently challenging economic environment, stronger equity positions expand companies’ strategic flexibility. Many SMEs therefore rely on minority equity investments or mezzanine capital, particularly as debt capacities have often already been exhausted in the wake of the COVID-19 pandemic and the Ukraine crisis, and banks have become more cautious in their lending.”

In the 2021/22 financial year, BayBG’s investment portfolio reached a record level of €350 million. Repayments were within the average range. However, due to the challenging market environment, not all planned exit transactions could be completed. As a result, the previous year’s net income of €14.2 million – which had been strongly influenced by exit proceeds – was not reached. Nevertheless, BayBG achieved a solid and satisfactory annual result of €5.3 million.

Peter Herreiner, Co-Managing Director of BayBG, added:
“We are satisfied with the course of the financial year. With our new investments, we continue to strengthen medium-sized companies and startups across Bavaria.”

BayBG invests across a wide range of industries and offers equity investments of up to €10 million.

Demand for risk capital remains strong. In the first quarter of the current 2022/23 financial year alone, more than €24 million has already been invested. BayBG expects demand for equity financing to remain stable and aims to achieve new investments of over €50 million again in the current financial year, along with net income of €6.7 million and a further expansion of its investment portfolio in the medium term.