BayBG Invests €45 Million in Medium-Sized Companies and Startups in Bavaria
Munich, April 10, 2025. In the 2023/24 financial year, BayBG invested approximately €45 million in medium-sized companies and startups across Bavaria, compared to around €75 million in the previous year. Due to increased income from a significantly expanded portfolio over the past three years and several successful exits, BayBG achieved a net profit of €9.4 million, a notable increase over last year’s result of €5.1 million.
“Investments of around €45 million represent a solid performance given the current economic and geopolitical conditions,” says Peter Pauli, Managing Director of BayBG. “The structural crisis currently affecting Germany is causing medium-sized companies to act very cautiously and postpone major investment decisions. As a result, the demand for equity capital is decreasing.”
The weaker demand for equity capital is most visible in BayBG’s traditionally strongest segment, the Growth/Mittelstand division: while €43.7 million was invested in Bavarian companies in the previous year, the volume dropped to €22 million in the 2023/24 financial year.
“The main reason is the strong reluctance to invest. In addition, the crises of recent years have shown many entrepreneurs that unpredictable external conditions can arise which may lead to company crises without any management failure,” Pauli explains.
Demand for equity solutions to address corporate succession remained largely stable, with investments of €10.2 million in 2023/24. €7.6 million in venture capital was invested in startups, and investments in small and young companies as well as business formations totaled €2.7 million. The specialized Turnaround segment invested €2.5 million in companies facing special situations.
With €45 million in new investments, BayBG fell short of its €58 million target for the 2023/24 financial year.
“Achieving a higher level of new business would have been possible last year without difficulty, but we apply very strict standards to our investments in order to meet our responsibility toward entrepreneurs,” says Peter Herreiner, Managing Director of BayBG.
BayBG’s total assets increased to €453.5 million, with equity rising to €278.7 million as of September 30, 2024. In total, BayBG holds more than €382 million in equity investments and is invested in 457 Bavarian companies employing more than 40,000 people.
“Despite the current tense environment, we remain cautiously optimistic for the medium term. Bavaria is a strong economic and technological region and continues to offer significant entrepreneurial opportunities,” says Pauli.
“In the medium term, growth-oriented and innovative companies will require equity financing to be able to pursue larger development steps on a solid financial basis,” adds Herreiner. “With our minority shareholdings and mezzanine capital, medium-sized companies receive ideal solutions to strengthen their equity base and pursue growth ambitions.”
Press contact:
BayBG
Franziska Roederstein
Phone: 089 122280-174