Deutsche Asset Management has announced a new structure, management team and brand ahead of its planned initial public offering next year, which will see its parent group sell a minority stake in the money management unit.
About 55% of the firm's €698 billion ($832 billion) in assets under management are run on behalf of institutional clients.
The unit will operate within a Kommanditgesellschaft auf Aktien legal structure, which enables operational autonomy for the firm to support its growth ambitions, said a release by Deutsche AM. The structure, which will come into effect in the first quarter of 2018, also gives parent Deutsche Bank continued oversight to meet its regulatory requirements. The structure is a form of limited partnership under German law that also has elements of a corporation selling stock. The structure helps ensure Deutsche Bank's control over the unit.
"We want to unlock the full potential of Deutsche AM to facilitate growth," said Nicolas Moreau, head of the manager, in the release. "Our future legal structure demonstrates the long-term commitment of Deutsche Bank to our business while giving us the operational autonomy to advance our growth strategy."
Mr. Moreau, in a presentation Tuesday, said that having shares that are separate from Deutsche Bank will help attract and retain talent. The stock could also be used for "bolt-on" acquisitions, he said.
The stand-alone money management unit will operate under the new global brand DWS. The firm's exchange-traded funds label, Xtrackers, and real estate name, RREEF, will remain.
The new structure will also have a new designated management team. Karl von Rohr, chief administrative officer of Deutsche Bank, will become chairman of the supervisory board of Deutsche within the new structure. The board will comprise independent executives, other shareholder representatives and employee representatives. "The exact composition of the supervisory board will be determined in due course," said the release.
Half of the designated management team will be based in Frankfurt, including Mr. Moreau, who becomes CEO and chairman of the managing directors under the new structure.