DB Capital Partners Considers MBO –

Following much speculation as to the future of its private equity arm, Deutsche Bank has entered into negotiations with the management team of DB Capital Partners (DBCP) to carry out an MBO of its late-stage direct private equity portfolio. The combined book value of the portfolio is approximately _1.5 billion. Chairman and CEO Ted Virtue and European managing partner Graham Clempson will lead the management team.

Deutsche Bank has been conducting a review of its private equity operations with the aim of reducing its exposure to direct private equity investments. In addition Deutsche Bank and the DBCP management team are in discussions regarding other direct private equity assets with a book value in excess of a further _1.5 billion. The _2 billion fund-of-funds business, which represents approximately 30 percent of the business, is expected to remain with Deutsche Bank.