| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 1.11 | 77 |
| Graham Formula | n/a |
SGT German Private Equity GmbH & Co. KGaA (SGF.DE) is a Frankfurt-based private equity firm specializing in acquiring, fostering, and divesting stakes in established businesses and startups. Operating through its Asset Management and Investment segments, the company provides institutional investors with tailored private equity fund solutions while actively supporting portfolio companies in sales, marketing, finance, and operational management. Formerly known as German Startups Group, the firm has built a niche in the German financial services sector since its 2012 inception, combining hands-on value creation with disciplined investment strategies. With a market cap of €29.2 million, SGF.DE demonstrates a unique dual approach – managing third-party capital while maintaining proprietary investments in high-potential ventures. The company's negative beta of -0.289 suggests low correlation with broader market movements, potentially offering diversification benefits in investor portfolios.
SGT German Private Equity presents a specialized opportunity in the German SME and startup investment space, reporting strong 2022 performance with €6.85 million net income (63% net margin) and €10.78 million revenue. The firm's €10.76 million operating cash flow and minimal debt (€0.75 million against €1.5 million cash) indicate financial stability, though its small market cap warrants liquidity consideration. The 2-cent dividend yields modest income, while the negative beta may appeal to investors seeking market-neutral exposure. Key risks include concentration in German mid-market companies, limited scale versus global peers, and private equity's inherent illiquidity. The 2022 results suggest effective portfolio management, but investors should weigh the firm's niche focus against broader asset managers' diversification benefits.
SGT German Private Equity occupies a specialized position in Germany's lower-middle-market private equity landscape. Its competitive edge stems from localized expertise in German startups and SMEs – a segment often overlooked by larger pan-European funds. The dual business model (proprietary investments + third-party capital management) creates synergies but also limits scale compared to pure-play asset managers. With just €29 million market capitalization, SGF.DE lacks the fundraising firepower of institutional private equity firms, instead competing through operational hands-on support and market specialization. The firm's negative beta suggests differentiated portfolio construction, potentially hedging against market downturns. However, this boutique positioning creates vulnerability to competition from both larger private equity houses expanding downstream and venture capital firms moving upstream. SGF.DE's 2022 financials demonstrate strong execution (63% net margins), but sustaining this in Germany's competitive SME financing market requires continued access to high-potential deals – a challenge given rising interest rates and economic uncertainty. The firm's value proposition hinges on its ability to identify and nurture overlooked German gems better than both local business angels and international funds.