Deutsche Bank has struck a deal to give its asset management arm, DWS, preferred access to private credit opportunities originated by the bank, as both firms position to capitalise on the booming but increasingly competitive market.
Under the agreement, which was announced in a statement Tuesday, DWS will have the first look at select asset-based finance, direct lending, and other private credit opportunities sourced by Deutsche Bank. This allows DWS to offer these investments to its clients, strengthening its position in alternative assets.
“Private credit is a key offering for our clients who are looking for exposure to real-economy investments,” said Stefan Hoops, CEO of DWS. “Origination is the main differentiator for alternative asset managers, especially for asset-based finance, which requires very different origination channels than direct lending.”
The private credit market has surged in recent years, with major players like Apollo, KKR, and Blackstone increasingly taking market share from traditional banks. As a response, banks have sought partnerships with private credit managers to retain client relationships while minimising capital risk. For example, Citi struck a similar deal with Apollo in 2023.
Investor demand for alternative assets, including private credit, continues to rise, creating lucrative fee-generating opportunities for asset managers such as DWS. The firm currently manages €110bn of alternative assets within its €1tn total AUM.
As part of the Deutsche Bank-DWS agreement, Patrick Connors, formerly Deutsche Bank’s European head of global credit financing and solutions, will join DWS as Global Head of Private Credit.
