Deutsche Bank, DWS set European Transformation as strategic priority

Deutsche Bank and DWS today reiterated that they see the transformation of Europe’s economies as one of the key strategic corporate priorities for 2023 and beyond. The group is uniquely equipped to play a vital role in this transformation by addressing the growing demand for private capital to bridge the funding gap in strategic transformation areas, supported by new investment solutions that DWS announced today.

Karl von Rohr, President of Deutsche Bank and Chairman of Supervisory Board of DWS, said: “In the face of geopolitical uncertainties and a need to drive technological change and to become more sustainable, Europe needs to transform its economies. As private capital will be key to unlock investments at scale, Banks and Asset Managers will play a vital role in making European Transformation happen. This transformation will be driven to a large extent by Small and Medium Enterprises with no direct access to capital markets or other sources beyond credit. Deutsche Bank Group is ideally positioned to bridge this gap: We can finance these through our well-established relationship management channels at the Corporate Bank and Investment Bank, offer direct access to capital markets or cooperate with our asset manager DWS to make these financings investable for our private and institutional clients.”

Stefan Hoops, CEO at DWS, concluded: “DWS has a long track record in providing investment solutions with a focus on various aspects of transforming industries, in particular in the real estate and infrastructure sectors. On the back of this experience, we will leverage our already existing products as well as offering a dedicated family of new investment solutions to allow private capital to increasingly invest into European Transformation. Furthermore, we will provide both academic and company research to help informed decision-making in politics and industry. We are excited to use our capabilities to contribute to the fundamental transformative change in Germany and Europe.”

To address the growing demand for research about and financial instruments to support the upcoming fundamental economic transformation of the European continent, DWS will take a combined approach:

• The company intends to launch a family of investment solutions focussed on various aspects of European Transformation, starting in 2023.
• To ensure there is well-informed decision making in politics and industry on this topic, DWS will establish a European University Partnership Programme, starting with the Frankfurt School of Finance & Management.

DWS will also publish its own research with the first report to be published already in December 2022.

Launch of European Transformation Family of Investment Solutions

Over the next decades, Europe will need to make substantial investments to transform its economies, reduce outside dependencies, and build a sustainable industry landscape – as the continent aims to protect its current high level of living standards and to lay foundations for future prosperity. According to EU Commission estimates the EU green transition and digital transformation will require at least EUR 595bn per year in the transport, buildings, power, and industrial sectors^[1].

Based on soundings taken from EU stakeholders and clients, DWS aims to address the funding need through its existing alternatives and retail offerings as well as a family of new investment solutions. This family of new investment solutions will cover not only already identified transformation areas, such as Green Transition, Energy, Infrastructure, and Commercial and Private Real Estate, but also offer investors the chance for targeted investments in various asset classes. DWS’s goal is to raise up to EUR 20bn of capital by 2027 through such existing and new investment solutions. Beside leveraging the partnership with Deutsche Bank’s Private Bank, Corporate Bank and Investment Bank, DWS also aims to collaborate with government agencies and other stakeholders in transformation projects to invest into strategic areas, industries and companies, using a broad range of financing products, from equity investments and blended finance to mezzanine financing or venture capital. The launch of the first of several further investment solutions is already planned for 2023, with others to follow in the years to come.

“Centre for European Transformation” together with Frankfurt School of Finance & Management

Additionally, DWS and Frankfurt School of Finance & Management today announced the establishment of the “Centre for European Transformation”. DWS is committed to funding the research centre at least until 2028 with a total support of approx. EUR 2.6 million until 2028. The partnership is the first step of a European University Partnership Programme offering funding for professorships and research on European Transformation. Besides pursuing its own, independent research activities, the “Centre for European Transformation” will be host to initiatives developing practical solutions and recommendations, including financial formats and opportunities for transformational projects across Europe. The Centre will also become a hub for further academic partnerships.

Stefan Hoops said: “We are proud to partner with Frankfurt School of Finance & Management to lay the foundation for academic excellence and practical relevance in the Centre for European Transformation. With it we want to create Europe’s leading think tank connecting academics, business leaders and government officials to address the challenges of the 21^st century together and to foster sustainable transformation and growth in Europe.”

Professor Nils Stieglitz, President and CEO of Frankfurt School of Finance & Management, said: “I am very proud that DWS is partnering with Frankfurt School. Our business school's DNA combines excellent research with a high level of practical relevance on pressing transformational challenges affecting all industries. Europe faces numerous of these challenges such as technological innovation, climate change and resilient supply chains. The Centre will tackle these topics and includes two new professorships further adding to Frankfurt School’s strong experience and reputation in the field of finance.”

The “Centre for European Transformation” will begin its work in 2023. It will consist of two professorships to deliver dedicated thought leadership. It will facilitate interdisciplinary research and host regular international conferences and meetings.