Deutsche Bank (ETR:DBKGn) announced on Tuesday the establishment of DB Investment Partners (DBIP), a new independent investment manager. The platform aims to provide institutional clients, high net worth individuals, and retail investors with access to private credit investment opportunities.
DBIP will be chaired by Jon Aisbitt, former Chairman of Pension Insurance Corporation and Man Group plc, with Raheman Meghji serving as CEO. The entity will operate independently from Deutsche Bank but will retain its existing balance sheet-driven private credit business.
The new venture will invest across a range of private credit strategies and asset classes, including corporates, real estate, asset-based finance, renewable finance and energy transition financing, and infrastructure financing globally. This move marks Deutsche Bank's entry into raising external funds for private credit.
In an industry statement on Tuesday, the bank said that DBIP would also accept investments from retail investors. This trend is gaining traction among funds like Apollo and Blackstone (NYSE:BX) but is yet to be fully adopted by other banks.
"Deutsche Bank has a longstanding track record in private credit investing across sectors and geographies. DBIP will offer investors a way to access a set of differentiated investment opportunities sourced through Deutsche Bank's global banking footprint and local market presence," said Raheman Meghji, CEO of DBIP.
Chairman Jon Aisbitt expressed his enthusiasm about his new role at DB Investment Partners, highlighting the growing demand for private credit solutions from both investors and borrowers. He also emphasized Deutsche Bank's strong track record in this space and the extensive investment experience of the senior team at DB Investment Partners.
The German banking giant already invests in private debt through its balance sheet. However, it expects the new investment manager to benefit from deal flow generated through Deutsche Bank’s existing lending arms.
This move comes as other banks such as JPMorgan Chase & Co. (NYSE:JPM) and Societe Generale (OTC:SCGLY) SA have also ventured into private credit this year. The industry has seen significant growth, with new entrants like Fidelity International and Ninety One PLC contributing to an industry size of $1.5 trillion..
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