Deutsche raises €260m for German co-investment

Deutsche Asset Management’s German Access Fund will invest alongside private equity firms in German mid-market businesses.

Deutsche Asset Management has held a final close on its German Access Fund (GAF) programme on €260 million.

The vehicle, which the firm said received commitments from a diversified pool of investors, will primarily look to co-invest alongside private equity houses in German Mittelstand businesses, as well as make investments into small and mid-cap partnerships.

The fund “will capitalise on the deep networks of our private equity business in Germany to source and evaluate leading private equity managers and co-investment opportunities”, GAF programme portfolio manager Andreas Schmidt said.

GAF held a first close on an undisclosed amount in July 2015 and has already completed four co-investments, including backing Mediglobe Group alongside Duke Street Capital, and Amor Group alongside Gilde Buyout Partners.

These transactions “show DB Private Equity’s differentiated ability to align itself with top-tier investors in quality companies representing a cross-section of the German Mittelstand”, added GAF programme portfolio manager Claudio Siniscalco.

“Our aim is to be the co-investor of choice for any private equity investor considering making an investment in a German company,” he said.

Deutsche Asset Management’s private equity business manages a portfolio of 550 private funds with more than 300 GPs across the globe, totalling more than $11.8 billion on 30 June 2016.

In its third quarter results last week, Deutsche Asset Management, which houses the bank’s alternatives arm, reported third-quarter revenues of €628 million, down 8 percent on the same period last year, which the bank put down to lower active and passive management fees partly due to net outflows of invested assets, as well as a decline in other revenues from alternatives.