Deutsche Finance Group (DFG) has pledged to maintain its investment partnerships with pension funds as it undertakes a period of structural and strategic change.
The Munich-based private markets specialist, which manages over $12bn in assets and has offices in London and the US, said it is adapting its organisation, processes and products to a “more complex and more international market environment” after two decades of continuous growth.
DFG said it will continue to expand its investment platform for institutional real estate investments, offering pension funds and other institutional investors access to off-market opportunities in private equity, real estate and infrastructure.
“The focus for 2026 will be on new investment strategies that meet the changing requirements of institutional investors in the area of innovative residential concepts,” the group said.
As part of this shift, DFG has brought in Ralph Winter, founder of family office W5 Group, as a strategic shareholder to help develop an investment platform for “innovative living” in Europe, particularly in Germany.
The realignment comes as many institutional investors, including pension funds for professionals (Versorgungswerke), continue to adjust their own portfolios in response to market volatility and write-downs on real estate, equity and debt positions accumulated during the low-interest-rate era.
DFG described its institutional business as a “central pillar” of its corporate strategy, supported by long-term partnerships with Pensionskassen, Versorgungswerke, insurance companies and sovereign wealth funds.
The group’s investment partners include Bayerische Versorgungskammer (BVK), which manages €117bn in assets for professional pension funds in Bavaria, and the pension fund for lawyers in Hesse. Both declined to comment on the current state of their partnerships with DFG.
In 2021, the New Zealand Superannuation Fund appointed Deutsche Finance International, which is run as an independent business by its founders and co-owners and in which DFG is a shareholder, as an external manager.
Last year, DFG secured more than €900m in equity commitments from institutional investors.
However, the company has also been reducing its workforce by about 18%, amid weaker-than-expected investment performance. A spokesperson told Handelsblatt that results from investment placements were “below expectations” in a challenging market environment.
According to Handelsblatt, Germany’s financial regulator BaFin is monitoring the situation, while rating agency Scope has placed Deutsche Finance Holding’s asset management rating under review for a possible downgrade.
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