Deutsche Bank is putting the final touches on a $700 million collateralized fund obligation backed by its own private equity portfolio, says a banker on the deal. Called DB Capital, the deal is being structured and lead-managed by Deutsche Bank's London-based collateralized debt obligation team. The deal is thought to be the largest CFO to date and the first to be sponsored by a bank.
The banker says the deal, which should hit the market by mid-December, is being done as part of Deutsche Bank's effort to convert its private equity business into a third-party asset management business. New York-based Chuck Flynn, portfolio manager, will be the asset manager on the deal. Calls to Flynn seeking comment were not returned by press time last Thursday.