In the 2022/23 fiscal year, BayBG invested approximately €75 million in medium-sized companies and startups. This represents approximately €7.5 million more than in the previous year. The portfolio grew by twelve percent year-on-year to €395 million. The high demand for mezzanine and equity solutions led to an increase in invested capital in almost all of BayBG's business areas.
€43.7 million was spent on expansion financing for medium-sized companies, while a further €12.1 million was spent on business succession planning. Venture Capital invested €11 million in startups. Investments in small businesses amounted to €3 million, and start-up investments amounted to €2 million. The Turnaround division invested €3 million in companies in special situations in the past fiscal year.
BayBG Managing Director Peter Pauli explained:
"Our business figures reflect the increased investment and transformation needs of medium-sized companies, as well as the capital requirements of startups. At the beginning of our fiscal year in October 2022, many medium-sized companies still had a high order backlog in the wake of the coronavirus crisis and – despite the difficult situation – assumed an economic recovery. At the same time, there was and continues to be a need for investment, not least due to the energy transformation and new technologies."
BayBG: Equity is gaining importance
Economic concerns and geopolitical crises have been a burden for companies and dampened economic expectations. Furthermore, banks are acting more cautiously in light of the current developments. Furthermore, the increasing number of inquiries at the investment companythat equity is becoming increasingly important as a building block of corporate financing.
Peter Herreiner, second managing director of BayBG, explains:
"BayBG's focus is absolutely on the right quality of its investments. New business in the 2022/23 financial year could have been even higher, but not with the management, market, and future viability criteria of the companies we invest in. It is of central importance to us that we contribute to enabling precisely those promising companies with good future prospects to develop further, secure jobs, and thus also advance Bavaria as a business location."
