BaFin enforcement against Mutares: Accounting deficits at PE turnaround specialist

Financial regulator identifies systematic reporting deficiencies in the 2023 financial statements - shares lose 14 percent after announcement

Regulatory audit in accordance with WpHG procedures

On July 23, the German Federal Financial Supervisory Authority (BaFin) initiated a formal audit of Mutares' 2023 annual financial statements. The investigation is based on concrete indications of violations of accounting regulations and covers both the balance sheet and the management report.

Specific compliance deficits identified

The supervisory authority criticizes two central areas:

Balance sheet disclosures: The lack of a separate note on the remaining term of receivables from affiliated companies violates transparency requirements.

Management report forecasts: The exclusive focus on key earnings figures (sales, earnings) without statements on the net assets or financial position violates the completeness of the forecast.

Mutares defense against supervisory allegations

The Munich-based turnaround investor comprehensively rejects BaFin's criticism and argues with proper accounting. The objectionable wording of the claim refers to uncertainties in the restructuring progress of portfolio companies, not to contractual terms. In response to the criticism of the forecast, Mutares emphasized that all key financial performance indicators had been fully forecast. M&A and restructuring activities generate uncertainties that are "comprehensively addressed" in the risk report.

Deloitte certificate despite BaFin complaints

Remarkable: The Big Four company Deloitte issued unqualified audit opinions for both the annual financial statements and the management report. This discrepancy between the auditor's opinion and the supervisory criticism illustrates different assessment standards.

Capital market reaction and historical burdens

The Mutares share lost over 20% at times and closed down 14% at EUR 26. The share price performance eliminated almost all annual profits in 2025.

Repeated accounting problems

The current BaFin audit is one in a series of compliance problems: As early as spring 2025, the 2024 final publication was delayed due to increased documentation requirements and "complex special circumstances" in the Deloitte audit. This development signals systematic challenges in the financial reporting governance of the PE investor and could result in regulatory intensification.