Deutsche Bank and DWS Announce Partnership in Private Credit
In a significant move that underscores the growing importance of private credit markets, Deutsche Bank and DWS have jointly announced the establishment of a strategic cooperation designed to unlock new avenues of private credit origination and investment opportunities for DWS clients. This collaboration is poised to reshape the landscape of private credit investment by leveraging the unique strengths and expertise of both financial giants.
Core Aspects of the Cooperation
At the heart of this strategic alliance is an arrangement that grants DWS preferred access to a suite of asset-based finance and direct lending opportunities sourced and originated by Deutsche Bank. By combining Deutsche Bank’s leadership in fixed income markets and its robust capabilities in liquidity provision and financing, with DWS’s well-established expertise in managing alternative investments, this partnership aims to provide an enhanced set of private credit opportunities to institutional and individual investors worldwide.
This cooperation is particularly significant given the size and depth of DWS’s alternative investments platform, which managed assets worth approximately EUR 110 billion as of December 31, 2024. Deutsche Bank’s well-established track record in credit origination, coupled with DWS’s extensive investment experience, sets the stage for an expansive pipeline of attractive private credit deals that can meet the evolving demands of clients seeking exposure to real-economy investments.
Why Private Credit? Rising Investor Appetite
Private credit has emerged over the past decade as one of the fastest-growing segments within the broader alternatives landscape. Characterized by lending directly to private companies or financing assets without the involvement of traditional public markets, private credit offers investors the potential for enhanced returns, diversification, and relatively stable income streams. Amid a backdrop of economic uncertainties, market volatility, and tightening regulations on traditional lenders, private credit is increasingly seen as an attractive option for institutional investors such as pension funds, insurance companies, and sovereign wealth funds.
Both Deutsche Bank and DWS have recognized this demand trend. By joining forces, they intend to capitalize on the increasing appetite for private credit products, providing clients with more direct exposure to asset-backed finance solutions and direct lending strategies that are typically more difficult to access independently.
A Powerful Combination of Strengths
The synergy between Deutsche Bank and DWS is rooted in their complementary strengths. Deutsche Bank has long been recognized as a market leader in the fixed income space, with deep liquidity pools, market access, and a highly developed global financing network. Its origination capabilities span a wide range of private credit asset classes, and the bank boasts a strong legacy of structuring and executing complex financing solutions.
DWS, meanwhile, brings to the table five decades of experience managing alternative investments, making it one of the more seasoned players in the space. The firm’s EUR 110 billion alternatives platform reflects its established presence and trusted reputation among global investors seeking alternative investment vehicles, particularly in private credit, infrastructure, and real estate.
According to the announcement, DWS will leverage Deutsche Bank’s origination capabilities to source bespoke opportunities in private credit markets that align with the firm’s investment criteria and objectives. This gives DWS’s global client base access to exclusive, high-quality investments that would otherwise require significant internal sourcing capabilities to obtain.
Leadership Appointment to Bolster Private Credit Ambitions
In tandem with the announcement of the strategic cooperation, DWS also unveiled a key leadership appointment to further reinforce its ambitions in the private credit arena. Patrick Connors, who currently serves as the European Head of Deutsche Bank’s Global Credit Financing and Solutions business, will transition to DWS to take on the role of Global Head of Private Credit. Connors will report directly to DWS’s CEO, Stefan Hoops.
Connors brings with him over 20 years of extensive experience in private financing and credit markets, with particular expertise in asset-based finance. His appointment underscores DWS’s commitment to scaling up its private credit business, ensuring that the firm is well-positioned to seize the opportunities presented by this strategic collaboration.
Executive Commentary: A Shared Vision
Commenting on the cooperation, Stefan Hoops, CEO of DWS, emphasized the importance of private credit as a cornerstone offering for investors who are keen on gaining exposure to real-economy investments. He noted, “Private Credit is a key offering for our clients who are looking for exposure to real-economy investments. Origination is the main differentiator for alternative asset managers, especially for asset-based finance, which requires very different origination channels than direct lending.”
Hoops further elaborated that combining Deutsche Bank’s extensive and well-established origination expertise with DWS’s decades-long experience in managing alternative investments was a logical and strategic step. He expressed excitement over the potential to significantly enhance DWS’s alternative credit capabilities through this cooperation.
Echoing similar sentiments, Ram Nayak, Co-Head of Investment Banking and Global Head of Fixed Income & Currencies at Deutsche Bank, highlighted the strength of investor demand for private credit assets. He remarked, “Investor demand for private credit assets is strong and we have a market-leading financing business with a long track record in private credit origination across all asset classes going back more than two decades.”
Nayak underscored that DWS, with over EUR 1 trillion in assets under management and a robust global distribution network, is the ideal partner to help deliver Deutsche Bank’s private credit offerings to a wider pool of investors. He added, “With close ties to Deutsche Bank, DWS is the ideal partner to leverage our expertise, delivering our offering to their clients.”
Implications for the Private Credit Market
The partnership between Deutsche Bank and DWS is indicative of a broader trend within the asset management and banking industries: the growing collaboration between traditional banks and alternative asset managers to better serve the sophisticated needs of investors. In particular, asset-based finance requires specialized origination channels and strong relationships within various sectors of the real economy—an area where Deutsche Bank has established credibility.
This move not only strengthens DWS’s private credit capabilities but also underscores the rising importance of origination in differentiating private credit offerings. In a market where yield compression and increased competition are becoming more common, the ability to source proprietary, high-quality deals is crucial.
Furthermore, the partnership reflects a deeper alignment between banking institutions and asset managers, offering a blueprint for future collaborations aimed at delivering innovative investment solutions across private markets.
