Feb. 5 (Bloomberg) -- Deutsche Bank AG, which is cutting about 2,000 jobs companywide, is hiring at its RREEF infrastructure and real estate unit, a business it’s counting on to boost earnings power.
Starting by recruiting one person in Paris, Deutsche Bank’s RREEF Alternatives division also plans to tap talent in the U.S. and Asia, Pierre Cherki, who heads the unit of the Frankfurt-based bank, said yesterday in an interview.
“We’re filling a number of gaps in terms of people that need to come and support the growth of the business,” Cherki said yesterday, after announcing the members of a nine-member team that will lead RREEF Alternatives. “We’re looking to hire one person in Paris to head the real estate side.”
RREEF is also looking to fill “a number of positions in the U.S. on the asset management or the acquisitions side” as well as research positions in Asia and Europe, he said.
Deutsche Bank, which last week reported a 2.17 billion-euro ($2.92 billion) loss for the fourth quarter, is counting on RREEF and the other units of its asset- and wealth-management business to help lift profits by 2015 with a mix of cost cuts and earnings growth. Cherki said investors want the kind of assets he offers as Europe’s debt crisis makes the stable returns from real estate and infrastructure an attractive alternative to government bonds.
Cherki will be in Paris on Wednesday for interviews, and RREEF frequently looks to hire bankers with knowledge of both infrastructure and real estate as the two are similar, he said.
Real estate accounts for about 75 percent of RREEF’s portfolio while the remainder is made up of infrastructure assets, he said, without specifying how he expects that balance to develop. RREEF Real Estate managed 41 billion euros at the end of September, according to its website.
Maximilien de Wailly left as head of the Paris office for real estate in December after eight years and eight months at RREEF to join Morgan Stanley, where he is a managing director, according to his LinkedIn social network profile. Anne Genot, a member of his team at RREEF, moved to Allianz SE’s French real estate unit, her page on Agefi.fr, a networking website, shows.
Deutsche Bank said on Oct. 30 that it was eliminating 1,993 jobs across the company, with 562 of them at the asset and wealth management unit. Cherki said the cuts at his unit were completed “very quickly because these sort of exercises are painful and disruptive.”
RREEF currently has four employees in Paris who are supported by colleagues in Frankfurt and London, said Cherki.
“The focus of most real estate investors in Europe is still on the three largest European markets -- the U.K., Germany and France,” said Cherki. “We have a meaningful investment pipeline in all three markets.”
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