Deutsche Bank might look to sell off one or more of its three main asset management business lines put under strategic review, said sources speaking anonymously.
While RREEF, DB’s U.S.-based real estate subsidiary, would likely attract a lot of interest if put up for sale, the firm’s global institutional and insurance investment businesses would also attract plenty of attention, sources said.
DB announced Tuesday that it will consider “all strategic options,” including expanding or selling parts of its asset management business. However, the firm will not sell its DWS mutual fund franchise in Germany, Europe and Asia, company spokesman Klaus Winker said. He said the bank remains committed to its asset management business.
The business had €523 billion ($707 billion) in assets under management as of Sept. 30.
“We expect this to be the first of many European banks to review their asset management operations, but they won’t all necessarily end with a sale,” said Benjamin F. Phillips, partner at Casey, Quirk & Associates.
The results of these reviews could be sales, Mr. Phillips said. But bank officials could also decide to improve their money management businesses organically or to put them in a better position for being spun off within a few years.
Mr. Phillips declined to comment specifically on DB’s review announcement, or to speculate on what firms might be interested in the asset management units.