DEUTSCHE Bank Is in Talks with Dutch Finance House NIB to Sell Its Private Equity Investments for about $5Bn
DEUTSCHE Bank is in talks with Dutch finance house NIB to sell its private equity investments for about $5bn.
The move will see DB effectively exit its DB Capital buyout business. Deutsche Bank has had a volatile involvement in private equity and lost several hundred million pounds for clients when its Morgan Grenfell Private Equity business swapped a holding in Formula 1 motor racing for shares in the German media group EMTV.
NIB, owned by Dutch pension fund giants ABP and PGGM, is holding roadshows to persuade investors to back a buyout of the fund. The Business understands the two Dutch pension funds would support most of the acquisition but want to bring in third party funds to spread the risk.
Deutsche Banks sale of its finance house has partly been caused by slumping financial markets, which have forced it to seek new sources of capital. Investors are also increasingly concerned that private equity is unpredictable and yet argue that if the bank makes too much money from buyouts and venture it is effectively operating as an investment trust.
Banks, insurers and industrial corporations are expected to offload as much as $30bn private equity investment this year, according to Coller Capital, the investment firm which last week announced a $2.5bn private equity fund to acquire these portfolios.
Jeremy Coller, Coller Capitals founder, said: oNow that more than $1 trillion has been invested in private equity over the past 10 years, the secondary market provides institutions with a means of exiting their investments early.o
DB Capitals investments include the operating assets of holiday group Center Parcs, a stake in United Biscuits and struggling Dutch chemical company Vantico. …