Deutsche Finance Group (DFG) is facing what is claimed to be the first lawsuit from a German investor, following pressure from financial supervisory authority BaFin to disclose information about closed-end public funds.
In August, law firm TILP filed a lawsuit against a fund managed by Deutsche Finance Group on behalf of a private investor.
The lawsuit, filed at the Munich district court, concerns the IPP Institutional Property Partners Fund II (IPP Fund II), TILP lawyer Christian Palme told IPE.
“With the lawsuit, we aim to receive information about the fund,” he added.
DFG has not published financial statements for 2024 and 2025 for 17 of its 21 funds, according to an analysis by consumer watchdog Stiftung Warentest.
“We want to know what has happened between the end of 2023 and now, what is the current financial situation of the [IPP II] fund, gains and losses for 2024 and 2025, and the rental situation, among other information,” Palme added.
TILP expects to receive the information about IPP Fund II this year.
“In a further step, if this lawsuit is successful, we will try to receive information also for other funds. Another step that we are preparing now is claim for damages for investors, but not for the IPP fund II,” Palme said.
The lawsuit follows an order issued by BaFin requiring Deutsche Finance Investment, a subsidiary of DFG, to provide documents so that the regulator could form “its own picture” of the management of closed-end retail funds.
In a statement, Deutsche Finance said the obligation to provide information and documentation relates to five real estate investments involving a co-investor.
The portfolios of the other funds managed by Deutsche Finance Investment are not subject to the order, the statement added.
Deutsche Finance Investment said it would continue to provide comprehensive support for the investigation.
Separately, on 2 September, the Munich district court ordered preliminary insolvency administration for DF Deutsche Finance Investment Fund 17 – Club Deal Boston II, according to a notice published on Germany’s E-Justice service and information portal Insolvenzbekanntmachungen.
Attorney Michael Jaffé, known for his role in the insolvency of Wirecard, was appointed preliminary insolvency administrator, according to the notice.
