In fiscal year 2022/23, BayBG invested approximately 75 million euros in medium-sized companies and startups. This is about 7.5 million euros more than in the previous year. The portfolio grew by twelve percent year-over-year to 395 million euros. The high demand for mezzanine and equity solutions led to an increase in invested capital across nearly all business divisions of BayBG.
43.7 million euros went to expansion financing for medium-sized companies. An additional 12.1 million euros flowed into business successions. The Venture Capital division invested 11.0 million euros in startups. Investments in small businesses totaled 3 million euros, with 2 million euros allocated to business start-up participations. The specialized Turnaround division invested 3 million euros in companies in special situations during the past fiscal year.
BayBG CEO Peter Pauli explains:
“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 in Bavaria still had a high order backlog following the coronavirus crisis and, despite the difficult situation, expected an economic recovery. In parallel, investment needs existed and continue to exist due to energy transformation and new technologies.”
BayBG: equity gains in importance
Economic concerns and geopolitical crises have been a burden on companies and dampen economic expectations. Moreover, banks are acting more cautiously in light of current developments. Additionally, the rising number of inquiries to the investment company shows that equity is gaining importance as a component of corporate financing.
Peter Herreiner, second CEO of BayBG, explains:
“BayBG’s focus is absolutely on the right quality of engagements. New business in fiscal year 2022/23 could have been even higher, but not while maintaining the standards we apply regarding management, market, and future viability of companies. 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 advance Bavaria as a business location.”
