DWS Group alternatives head Paul Kelly is stepping aside from his role after just two years in charge of the key division at Deutsche Bank AG’s investment arm.
The former Blackstone executive will become chairman of the €110 billion ($120 billion) unit from April 1, focusing on strategic partnerships and identifying “inorganic growth opportunities,” DWS Chief Executive Officer Stefan Hoops said in a memo on March 14, seen by Bloomberg News.
The heads of the alternatives business lines — which include real estate, infrastructure and liquid real assets — will report directly to Hoops as part of the change, instead of Kelly, according to the memo. A spokesperson for DWS confirmed the contents of the memo.
The alternatives unit is a key part of Hoops’ growth strategy for DWS, which managed more than €1 trillion in assets at the end of 2024. But the division has seen its assets drop more than 10% since Hoops took over as CEO in 2022. An effort to establish a private debt business has proven especially difficult.
The German asset manager has struggled to attract sizable commitments from investors for a private credit fund targeting €1 billion, Bloomberg reported in January. It is among a number of newcomers struggling to make a mark in the increasingly crowded asset class, where even BlackRock, the world’s largest asset manager, has turned to acquisitions to rapidly scale up.
The management reshuffle comes after a series of leadership changes under Hoops, who was brought in to steady the ship after a period of tumult surrounding allegations that DWS overstated its green credentials. In 2023, Hoops replaced Chief Operating Officer Angela Maragkopoulou after about a year following cost overruns at a large-scale IT revamp. More recently, Chief Investment Officer Bjoern Jesch left the firm by mutual agreement.
Hoops said while the past couple of years have been difficult for private markets, particularly in real estate, the private credit and real estate debt businesses had made “good progress” in building out new offerings.
“We have a great alternatives franchise and this announcement changes nothing but the reporting lines of a small number of senior people,” he wrote. “At some firms, this leads to a few days of gossiping and taking the eye off the ball. Not at DWS. We have a job to do and I expect everyone to fully focus on” it.
