NIB Capital enters DB Capital fray

The private equity division of the Dutch pension fund manager is considering making an offer for part of Deutsche Bank’s E6bn private equity business.

NIB Capital, the investment banking and private equity division of Dutch pension funds ABP and PGGM, is preparing an offer for part of Deutsche Bank’s private equity division.


Deutsche Bank had indicated that it is willing to sell up to 70 per cent of the DB Capital portfolio, as the bank looks to reduce its exposure to private equity.


Under CEO Josef Ackermann, Deutsche Bank is pursuing a tighter focus on global investment banking and asset management and European retail banking. Today, Boston-based State Street Corp agreed to pay up to $1.5bn for Deutsche Bank's securities services business in a deal that makes State Street the world's largest custodian of financial assets.


NIB is one of a number of international finance houses which have held informal talks with Deutsche Bank about the unit, which is also likely to be the subject of a management-backed offer. Last month reports suggested that CEO Josef Ackermann had already held tentative talks with Henry Kravis of KKR about a sale of the portfolio and that both Merrill Lynch and Goldman Sachs have also signalled their interest.


Deutsche Bank's entire private-equity portfolio is valued at about E6bn, but the bank is looking to sell only part of these holdings, valued at about E2.5bn. Deutsche Bank is one of a number of large institutions that has had to write down the value of its investments because of falling stock valuations. The bank's other options include the liquidation of the unit's assets or a piecemeal sale of the DB Capital’s private-equity assets to different buyers. The bank is expected to reach a decision by the end of the year.


Reports of a possible sale saw Deutsche Bank’s share price rise by nine per cent to E47.51.