RREEF could be swallowed up by US investment manager Guggenheim Partners as part of a takeover of Deutsche Bank’s asset management business.
The Frankfurt-based bank said this week that it had entered into exclusive talks with Guggenheim over the potential sale of its €516bn (£443bn) global asset management group.
This includes DWS Americas, the Americas mutual fund business; DB Advisors, the global institutional asset management business; and Deutsche Insurance Asset Management, the global insurance asset management business.
It also includes RREEF, the global alternative asset management business specialising in real estate and infrastructure.
RREEF’s real estate business, headed by Pierre Cherki, had €41.8bn of assets as of 31 March 2011. Around half was in the Americas, €16.6bn in Europe and €3.4bn in Asia Pacific.
While asset management has been profitable in recent quarters, the division has lagged behind much of the industry.
Guggenheim was founded with backing from the Guggenheim family and has AUM of £93bn. It has been competing with companies including Macquarie Group of Australia to buy the businesses.
bridget.oconnell@estatesgazette.com
