DWS and Deutsche Bank to Develop Private Credit Partnership

DWS Group, one of the Europe’s leading asset management firm with more than $1 trillion assets under management, and Germany’s Deutsche Bank on Tuesday announced the launch of a strategic cooperation to develop private credit origination and investment opportunities for DWS clients across the private credit space.

As part of the cooperation, DWS will have preferred access to certain asset-based finance, direct lending and other private credit asset opportunities originated by Deutsche Bank.

This strategic cooperation brings together Deutsche Bank’s market leadership in Fixed Income market access, liquidity provision, and financing capabilities, and the investment heritage and expertise offered by DWS’s $120.36 billion alternatives platform.

The cooperation enables DWS to leverage Deutsche Bank’s extensive sourcing and origination capabilities to provide additional private credit investment opportunities to its global client base, the European company said.

At the same time, Patrick Connors will move to DWS from his current role as European Head of the Global Credit Financing and Solutions business at Deutsche Bank to become Global Head of Private Credit at DWS.

He will report to CEO Stefan Hoops. Patrick has over 20 years of experience in the private financing and credit markets and has a very broad range of expertise across all areas of the private credit market particularly in Asset-Based Finance.

Logical Step                        

DWS CEO Stefan Hoops said that private credit is a key offering to their clients who were 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.

He also said that combining Deutsche Bank’s extensive and established origination expertise and wide range of real-economy relationships, with DWS’s 50 years of experience in managing Alternatives is a logical step.

Ram Nayak, Co-Head of Investment Banking & Global Head of Fixed Income & Currencies at Deutsche Bank, said that partnering with DWS will ensure developing private credit investment opportunities for investors.

“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. With over EUR 1 trillion of assets under management and a global distribution network, as well as close ties to Deutsche Bank, DWS is the ideal partner to leverage our expertise, delivering our offering to their clients,” he added.

A Growing Market

According to global credit rating agency Moody’s the size and scope of the global private credit markets will continue to grow rapidly in 2025, spurred by lower interest rates, declining default risk and solid economic strength, led by the US and Europe.

Global private credit assets under management (AUM) will jump to $3 trillion by 2028, reflecting greater momentum than in the past two years, Moody’s said.