Deutsche Bank inks “strategic cooperation” with DWS to boost private credit unit
Deutsche Bank executive Patrick Connors has been appointed global head of private credit at DWS, alongside a “strategic cooperation” between the two firms that will give DWS preferred access to private credit opportunities originated by the bank.
The agreement means that asset manager DWS – which was spun out of Deutsche Bank in 2018 – will be able to leverage the bank’s wider sourcing and origination capabilities to provide additional private credit investment opportunities to its client base, including asset-based finance and direct lending facilities.
At the same time, Connors will move to DWS from his current role as European head of the global credit financing and solutions business at Deutsche Bank.
Read more: DWS is looking to “dramatically improve liquidity” in private assets
He will report to chief executive Stefan Hoops. Connors has over 20 years of experience in private financing and credit markets, and has expertise across all areas of the private credit market particularly in asset-based finance.
The firms said that the partnership brings together Deutsche Bank’s fixed income market access, liquidity provision and financing capabilities, with the investment heritage and expertise offered by DWS’s €110bn (£92.6bn) alternatives platform.
The move to boost DWS’s private credit capabilities comes after it was reported by Bloomberg earlier this year that the asset manager was struggling to attract sizeable commitments for its private credit fund, while some senior sales staff had departed for higher pay at US rivals.
Hoops had been dedicating more of his time to private credit to give that segment of the business a boost, according to sources cited in the report.
“Private credit is a key offering for our clients who are looking for exposure to real-economy investments,” said Hoops.
“Origination is the main differentiator for alternative asset managers, especially for asset-based finance which requires very different origination channels than direct lending.
Read more: DWS launches capital solutions arm in alternative credit push
“Combining Deutsche Bank’s extensive and established origination expertise and wide range of real economy relationships, with DWS’s 50 years of experience in managing alternatives is a logical step. We are excited to cooperate with Deutsche Bank across the spectrum of private credit and to significantly enhance our alternative credit capabilities.”
Ram Nayak, co-head of investment banking and global head of fixed income and currencies at Deutsche Bank, added: “We are pleased to be partnering with DWS to develop private credit investment opportunities for investors. Investor demand for private credit assets is strong and we have a market leading financing business with a long track record in private credit origination across all asset classes going back more than two decades. With over €1tn of assets under management and a global distribution network, as well as close ties to Deutsche Bank, DWS is the ideal partner to leverage our expertise, delivering our offering to their clients.”
