Deutsche Bank entered into an agreement with its asset management arm, DWS, giving it preferred access to private credit opportunities sourced by the bank. 

The deal, announced Tuesday, strengthens DWS’s foothold in the alternative assets sector by providing first-look access to asset-based finance, direct lending, and other private credit transactions.

DWS CEO Stefan Hoops emphasized that private credit is a critical offering for investors seeking exposure to real-economy assets. He also highlighted the competitive edge that exclusive origination provides in asset-based finance, which requires distinct sourcing methods compared to direct lending.

The private credit market has grown significantly, with firms such as Apollo, KKR, and Blackstone capturing a larger share from traditional banks. In response, major banks have formed partnerships with private credit managers to maintain client relationships while reducing capital risk. Deutsche Bank’s move mirrors Citi’s 2023 partnership with Apollo, reflecting a broader trend among financial institutions adapting to the private credit boom.

DWS currently manages €110bn in alternative assets within its €1tn total AUM and is well-positioned to capitalize on the increased demand for private credit. As part of the agreement, Patrick Connors, previously Deutsche Bank’s European head of global credit financing and solutions, will take on the role of Global Head of Private Credit at DWS.

With institutional investors continuing to allocate more capital to private credit, the Deutsche Bank-DWS agreement highlights the growing role of asset managers in shaping the future of alternative investments.

Source: Reuters