Lone Star Funds is exploring a potential sale of IKB Deutsche Industriebank nearly two decades after acquiring a controlling stake in the lender, according to a report by Bloomberg.
The process is reportedly at an early stage, with initial interest emerging from potential bidders including Crédit Agricole. Sources familiar with the matter cautioned that discussions remain preliminary and may not ultimately lead to a transaction.
Lone Star acquired more than 90% of IKB in 2008 following the German bank’s rescue during the global financial crisis. IKB had been one of the European lenders most heavily affected by exposure to the US subprime market and was stabilised through support from a consortium that included Germany’s state-backed development bank.
The lender has since repositioned itself as a financing provider focused on German mid-market corporates.
Lone Star has explored multiple exit routes for IKB over the years, including a potential IPO or strategic sale. In 2021, IKB chief executive Michael Wiedmann said the bank was evaluating both options as part of its longer-term strategy.
More recently, IKB disclosed limited exposure to the collapse of UK-based mortgage finance company Market Financial Solutions. The bank said earlier this month that it expects a writedown tied to a £29m loan connected to the group, while stating it has no broader exposure to non-bank financial institutions.
