(Corrects name of buyer in second and last paragraphs.)
The sale of UFG to Russia’s Aton Capital is part of efforts to “maintain the most appropriate business mix,” Igor Lojevsky, Deutsche Bank’s vice chairman for Eastern Europe asset and wealth management, said in an e-mailed statement today. He declined to disclose the price of the deal when contacted by mobile phone.
Deutsche Bank is seeking to exit some businesses as it faces more stringent capital rules and possible legal bills from alleged fixing of benchmark interest rates and mis-selling of U.S. mortgage products. The firm is winding down 73 billion euros ($100 billion) of assets globally, it said in July.
The bank, based in Frankfurt, became the sole owner of Deutsche UFG Capital Management in 2011, three years after acquiring an initial 40 percent stake. It merged the unit with its Russian private wealth management unit last year to trim costs.
Deutsche Bank’s investment banking business in Russia, which includes UFG, is ranked 12th in the country by assets under management with $1.7 billion, according to Institutional Investor’s website.
In 2008, Deutsche Bank sold another Russian fund management company, DWS Investment, to Fleming Family & Partners Ltd., three months after it bought the 40 percent stake in UFG.
Deutsche Bank will continue selling offshore products to customers in Russia. UFG Capital Management offered onshore investment funds and discretionary portfolio management to private and institutional clients, Aton Capital said.
Aton is an independent brokerage and asset manager founded by former Kremlin adviser Yevgeny Yuryev.
-- Editors: Mark Bentley, Steve Bailey
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