Deutsche Bank has abandoned attempts to divest RREEF, its global real estate and infrastructure fund management business, saying it will now be retained as part of a new integrated asset and wealth management division.
Deutsche Bank has abandoned attempts to divest RREEF, its global real estate and infrastructure fund management business, saying it will now be retained as part of a new integrated asset and wealth management division.
The decision ends months of uncertainty about the EUR 56 bn RREEF business, which Deutsche Bank said it was considering selling at the beginning of the year. The German banking giant entered talks with US-based asset manager Guggenheim Partners earlier this year but the talks ended in June when the two sides failed to agree on the terms for a transaction.
This week Deutsche Bank announced the findings of its company-wide strategic review, entitled Strategy 2015+'. One of the key decisions is that RREEF and other asset management units will form part of the Asset & Wealth Management (AWM) division.
'Combining active and passive investment strategies together with retail asset management in one business unit will position the bank to fully exploit the potential of its roughly EUR 900 bn in assets under management and invested assets and to generate added value for customers,' Deutsche Bank said
in a statement.
'AWM will seek to double the size of its operating business from around EUR 800 mln in 2011 to EUR 1.7 bn in 2015, while firmly establishing itself as a global leader by increasing assets under management and invested assets to about EUR 1 tln,' the bank said.
