DWS, the asset management arm of Deutsche Bank AG, is exploring the possible sale of its private equity secondaries business as part of a wider company plan to withdraw from areas of operation where it currently lacks scale, according to a report by Bloomberg.
The report cites unnamed sources as revealing that DWS has already been in contact with several parties interested in potentially acquiring the unit.
Chief Executive Officer Stefan Hoops, who has been conducting a broad review of DWS’ operations since his appointment six months ago, reportedly believes that the PE secondaries business requires substantial investment, and that the funding would be better deployed elsewhere.
Secondaries transaction deal volumes hit an all-time high last year, according to Campbell Lutyens & Co, but with only around $450 million under management, the DWS secondaries unit is a small player in the market.
