Deutsche Bank recently announced that it will cut 18,000 jobs globally by 2022 to save roughly $7 billion dollars in annual expenses. It plans to close its equity trading business and also some parts of its fixed income operations, resulting in these job cuts across Asia, the UK and the US.
So knowing this, how have DB’s prime and other fund servicing businesses fared recently after the big announcement? RADiENT aggregates all data of investment advisers globally from their Form ADV- their funds, assets under management, as well as the service providers they work with such as prime brokers, administrators, custodians, marketers and auditors. This makes RADiENT Form ADV a great source of information for developments in this space.
Using the Service Provider Trends tool, we noted the following statistics on Deutsche Bank’s prime business since the start of 2019.
DB prime brokerage clients in 2019
|# Firms||285||274||-11 (-%)|
|Funds GAV||$2.07B||$1.93B||-$136M (-%)|
Deutsche Bank lost 45 funds overall in 2019
To get a more detailed picture, we looked at the individual firms and funds where DB has served as prime broker.
Long term clients like Angelo, Gordon & Co and Highbridge Capital Management continue to be DB clients. However, various investment advisers across the globe have discontinued listing Deutsche Bank as their prime:
A selection of DB'c clients and changes in business
|Alpine Associates Management Inc.
10 Funds (GAV $2.8B)
(New Jersey, United States)
|Thunderbird Partners LP
1 Fund (GAV $2.9B)
|Asia Debt Management Hong Kong Ltd.
9 Funds (GAV $1.13B)
You can take view more details about these firms on RADiENT.
So who got the largest slices of the pie? We further broke down the data to find out which of Deutsche Bank’s competitors have most benefited from these developments and identified the prime brokers who now service the funds that have dropped DB in 2019 – the big names like Goldman, Citi, JP Morgan and Morgan Stanley came out on top.
Top prime brokers for funds that dropped DB as prime broker since 2019
|Prime Broker||No of funds||Gross Asset Value|
|The Goldman Sachs Group||35||$178.37B|
|Bank of America Corporation||30||$243.41B|
|UBS Group AG||22||$157.62B|
It will be interesting to see how Deutsche Bank's business gets affected in the light of recent upheavals. As of now, 272 firms continue to list Deutsche Bank as Prime Broker while 711 advisers list them as custodians.
Deutsche Bank still boasts big names like Blackrock, AQR and Citadel as its customers, but with recent downsizing, we may see more large firms parting with DB as their preferred service provider. Sign up on RADiENT to find out who’s staying, or who may become your next client!