DWS Group launches a €2 billion fund
DWS Group is creating a new direct lending fund, for which it plans to raise €2 billion. Frankfurt-based company is creating a new direct lending fund and plans to raise €2 billion for it. This move will enable the Frankfurt-based company to strengthen its position in the market. Additionally, the firm intends to expand its services in the rapidly growing private lending sector.
The new fund will support medium-sized businesses in Europe. DWS has already contributed 3% of the declared capital. The remaining amount is being raised from institutional investors.
This project is the company’s largest in this area. For comparison, the previous fund amounted to €700 million in 2020. This indicates DWS’s growing interest in the private lending segment and its readiness to compete for significant market share.
The expansion is also taking place through a strategic partnership with Deutsche Bank. This collaboration will provide DWS with privileged access to banking instruments, enabling it to offer its clients expanded opportunities, including direct lending:
– direct lending;
– asset-backed financing;
– access to Deutsche Bank products.
As part of the agreement, Patrick Connors joined the DWS team. Connors previously headed the credit financing division at Deutsche Bank’s European branch. He will now oversee the development of the new platform and manage key partnerships.
DWS expects the partnership with Deutsche Bank to strengthen its capabilities in the private lending sector. It will also improve service quality and enable DWS to offer its clients a wider range of solutions.
The strategic importance of the partnership
The partnership with a major bank will take DWS to a new level. It gives the company a chance to join the ranks of leading asset managers. Improving its approaches has become a matter of strategic importance for DWS. Particular attention should go to developing private lending. This sector is in high demand among institutional investors. At the same time, DWS needs to strengthen its position because the market is significantly overcrowded. Large management companies consolidate capital, making it difficult for others to enter the market. The following companies are striking examples:
1. Ares, which raised €17.1 billion. The funds came in the form of commitments to invest in partner funds.
2. Intermediate Capital Group received €15.2 billion in September 2024. The funds were raised by a direct lending fund.
3. At the beginning of 2025, Arcmont’s fourth fund received an additional €10 billion.
These trends reflect the growing interest in the European direct lending market.
