Deutsche Bank is to rebrand and restructure its portfolio management division Deutsche Asset Management.
The German lender has unveiled plans to rebrand the division as DWS and float a minority portion of the asset management business, which is expected to raise around €2 billion ($2.4 billion).
Deutsche has set out plans to structure DWS so that it will retain dominant control of business, despite a portion of asset manager being public.
The bank said on Tuesday that its asset management arm will operate within the legal structure of a partnership limited in shares, or a what is known in German as a KGaA, during the first quarter of 2018.
This structure would only give external investors in the unit limited decision-making power instead of the common ‘one share one vote’ structure. It also ensures that Deutsche Bank can maintain full control of the unit even if its shareholding goes below 75%.
However, if the bank's shareholding falls below a certain percent, which is undisclosed at the moment, it could still lose the KGaA status and convert into a common stock corporation under German law.
Deutsche Asset Management has around €711 billion ($84o billion) in assets under management globally.
The bank said that this structure would ‘enable operational autonomy for Deutsche Asset Management to support its growth ambitions while giving Deutsche Bank continued oversight to meet its regulatory requirements.’
Deutsche Bank’s chief administrative officer and board member Karl von Rohr will become chairman of the unit, which will have a 12-member supervisory board consisting of independent members, other shareholder representatives and employee representatives.
‘We want to unlock the full potential of Deutsche Asset Management to facilitate growth. 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,’ said Nicolas Moreau, head of Deutsche Asset Management.
Moreau will become chief executive of the newly branded unit and be based Frankfurt along with half of the management team.