Guggenheim in Exclusive Talks for Deutsche Bank’s Fund Group

Guggenheim Partners has apparently won the auction for Deutsche Bank’s funds group, while the Macquarie Group has lost.

Today, Deutsche Bank announced it has entered exclusive talks to sell the funds unit to Guggenheim. The unit included in the sale are DWS Americas, DB Advisors, Deutsche Insurance Asset Management and RREEF, Deutsche Bank said.

Why is this interesting? Because I reported earlier this month that there were only two bidders, Guggenheim and Macquarie, left vying for the business. In November, Deutsche Bank’s asset management had €515.63 billion (US$697.16 billion) in assets under management. Deutsche Bank reportedly wanted to sell off the unit as a whole and was seeking $2 billion. However, press reports said the unit will likely fetch about $1.2 billion.

Guggenheim Partners makes sense for DB’s fund unit. The global financial services firm, which has more than $125 billion AUM, has made inroads in the asset management business. Guggenheim acquired the Claymore Group in 2009. It rebranded Claymore’s U.S. funds under the Guggenheim name. In January, Guggenheim sold Claymore Canada to BlackRock.

The auction of DB’s funds unit has been going on since November when Deutsche Bank announced it was reviewing its global asset management business. The review excludes DWS’ franchise in Germany, Europe and Asia.

Other bidders vying for DB asset management were Power Corp. of Canada, Apax Partners, State Street, JP Morgan and Ameriprise.

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