Deutsche Bank Considers Sale of Asset Management Unit

Deutsche Bank said Tuesday that it is conducting a review of its global asset management business.

This, of course, means that DB is considering selling its asset management business. A DB spokeswoman says all options are being considered for the business, including a sale or retaining some of the businesses. The review excludes DWS’ franchise in Germany, Europe and Asia. But DWS Americas is part of the review, the DB spokeswoman says.

What else is included –and could be up for grabs –are RREEF Alternatives, DB Advisors and Deutsche Insurance Asset Management.

Deutsche Bank’s asset management has €515.63 billion (US$697.16 billion) in assets under management. This includes €161.82 billion (US$218.79 billion) in institutional funds, €150.02 billion (US$202.83) in insurance and €46.35 (US$62.67 billion) in alternative funds.

DWS globally has €157.44 billion ($212.87 billion) in funds under management.

Peter Lenardos, an RBC Capital Markets asset management analyst, said that DB is selling the subpar assets that have “ongoing net outflows,” according to Financial News. Lenardos, in the story, said he can’t think of a buyer for the assets.

I’m hearing differently. Deutsche Insurance Advisors, which manages the balance sheet assets of insurance companies, “is a pretty big deal,” a banker tells me. Its largest client is Zurich Insurance.

The big players in the space are PIMCO and BlackRock. Either could be interested in the insurance unit, the source says. Other rivals, including Wellington Management, Conning & Co. (which is owned by PE firm Aquiline Capital Partners) and Goldman Sachs Asset Management could also be interested in the division, the source says.