Deutsche Bank and its asset management subsidiary DWS expand cooperation on private loans
The collaboration between Deutsche Bank and its asset management subsidiary DWS in the private credit space is broader than previously known. Going forward, DWS will work with Deutsche Bank’s corporate customer business in this area, according to Stefan Hoops, CEO of DWS, in an interview with the “Handelsblatt”. Until now, only a cooperation with the bank’s investment banking arm was known.
“We have completely changed our private credit strategy” said Hoops. Previously, DWS had tried to build something that others had already been working on for a longer period. “With the cooperation with Deutsche Bank, we now have privileged access to the credit pipeline of the investment and corporate bank” he explained. “This is a really differentiated offer on the market.”
“As part of the agreement, DWS can view the relevant pipeline of the investment and corporate bank and purchase loans preferentially” Hoops continued. However, there is no obligation to take them. “For this, a portion of the management fees goes to Deutsche Bank” the DWS CEO added.
Deutsche Bank and DWS announced their intention to cooperate closely in the private credit sector in mid-March. Private credit refers to loans to companies that are held by other market participants rather than banks. Deutsche Bank holds a 79.99% stake in the MDax-listed DWS.