On November 11th, UFG Asset Management announced the sale of its remaining 60% stake in Deutsche UFG Capital Management, a joint venture formed in 2008 focused on Russian retail and institutional money management, to Deutsche Bank AG.
UFG Asset Management emerges as a fully independent entity. All of our other businesses, namely UFG’s public markets hedge funds, private equity funds, real estate funds, as well as UFG Wealth Management, remain under current management controlled by the longstanding UFG partnership led by the firm’s founders, Charles Ryan and Florian Fenner. The remaining UFG Asset Management businesses have approximately $1.25 billion in assets.
This is the second time Deutsche Bank has performed extensive due diligence that culminated in the purchase of a major division from the partners of United Financial Group and its successor company, UFG Asset Management.
Florian Fenner will continue to serve as UFG’s Chief Investment Officer, running the firm’s five hedge funds (UFG Russia Select, UFG Alternative, UFG Credit Opportunities, UFG Russia Debt, and the UFG Debt Fund) and managed accounts. His core team of Maxim Tishin, Polina Minkina and Vadim Ogneshchikov remain intact.
Charles Ryan and Robert Sasson will continue to lead UFG’s Private Equity division, while Mikhail Tarasov and Pavel Fedorov remain in command of UFG’s Real Estate investment funds.
We strongly believe in the opportunity that is Russia and our ability to deliver superior returns to our investors via UFG’s public and private market strategies. We thank you for your trust and your continuing support for UFG Asset Management.
Below is the press-release, issued by Deutsche Bank and UFG AM:
Today Deutsche Bank AG and UFG Asset Management announced that Deutsche Bank, through its Asset Management division, will fully acquire Deutsche UFG Capital Management. Deutsche UFG Capital Management was formed in 2008 when Deutsche Bank acquired a 40 per cent stake in UFG Invest, the Russian investment management company of UFG AM.
Ranked by Assets under Management Deutsche UFG Capital Management is one of the top 10 players in the Russian asset management industry and the largest independent provider of mutual funds*.The product range includes investment funds and discretionary portfolio management for private and institutional clients.
Igor Lojevsky, Chief Country Officer of Deutsche Bank Russia, said: “Deutsche Bank acted early to become a leading player in top tier financial services in Russia, a market we see growing over the long term. The acquisition of UFG’s investment banking business in 2004 was a decisive step forward in that process, and today’s transaction further strengthens our role in Russia.”
Florian Fenner will continue his role as Chairman of Deutsche UFG Capital Management and join the DB Regional Executive Committee with a regional reporting line to Igor Lojevsky. Florian Fenner believes that: “Being part of Deutsche Bank Group will allow Deutsche UFG Capital Management to offer its customers a wider range of investment products. Affiliated to such a large multi-national player, we will be able to take the company to an international level. The completion of the transaction confirms our intention to grow and strengthen the position as well as our confidence in the prospects of the Russian financial market.”
All parties involved have agreed that financial terms will not be disclosed.