Keeping it in the family
UHNW family entrepreneurs have become increasingly sophisticated in recent years, showing a stronger interest in more strategic investments across public and private markets.
South-east Asia is seeing a resurgence of entrepreneurialism and endeavour, with family wealth growing when family companies restructure, delist, privatise or even buy out. Growing and protecting entrepreneurial wealth demands a cross between investment banking and private banking expertise, and it is at this intersection where Deutsche Bank International Private Bank (IPB) has an advantage.
Deutsche Bank IPB clients have become increasingly sophisticated in recent years, showing a stronger interest in more strategic investments across public and private markets, even take-private and bJuyout scenarios.
Many entrepreneurs are also turning to relationship managers for advice on how to "green" their family enterprise, as private companies grapple with emerging ESG (environmental, social and governance) regulation and compliance.
Such complex situations demand complex structuring and lending, above and beyond financing against traditional wealth investment products such as marketable securities, mortgages and policy premium financing.
Deutsche Bank IPB has the capability to engage in lending against a whole range of asset classes, including highly structured financing that brings a level of sophistication that incorporates Corporate & Investment Banking expertise within its private banking platform. Deutsche Bank IPB's ESG framework for green lending also offers a path.
The IPB takes a holistic approach by viewing the client relationship in totality, taking into account portfolio of assets under management, the quality of recourse, and pricing and risk assessments. This enables Deutsche Bank IPB to differentiate its lending offerings from peers.
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Across the lending book, Deutsche Bank IPB has executed various stock financing transactions with both majority and minority shareholders where it provided clients with liquidity and options to diversify into other assets, including capital market products, real estate acquisitions, alternative investments, and expanding their own business operations.
While each strategic lending transaction is unique and solution driven to address a client's specific financing situation, there are similarities. Most of these result from ongoing dialogue and in-depth discussion with clients in order for us to fully understand their business strategy and investment philosophy.
Utilising expertise in various asset classes and experience in complex credit structuring, Deutsche Bank IPB demonstrates its versatility in delivering innovative and flexible financing solutions, which has yielded higher client engagement on many occasions.
Over the past several years, Deutsche Bank IPB has executed a number of tailor-made strategic lending solutions for clients. For instance, providing financing against a client's minority stakes in two different multi-billion private companies in the financial and technology sectors, thereby enabling the client to monetise their illiquid stake while the companies planned for public listing.
Deutsche Bank IPB also delivered private share financing for a long-standing client backed by the sponsor's majority stake in a Singapore private luxury goods related company. This transaction fulfilled the client's intent to leverage this illiquid position to make further investments within the company and on personal fronts.
Despite the illiquid nature of securities, this transaction showcased IPB's expertise and ability to evaluate private equity stakes by applying extensive investment banking style analysis with significant legal due diligence.
Another client, who was a majority shareholder of a Singapore listed company, planned to take the company private at a relatively attractive valuation. We developed a recourse financing structure that assisted the client to delist the company for further restructuring.
Deutsche Bank IPB's lending offerings have contributed to successfully deepening long-standing client relationships, and which enabled clients to weather recent market cycles. The IPB's strategic focus on ESG also opens the door for clients to incorporate green lending in their portfolio.
These client solutions are made possible by strong collaboration within the bank, from coverage and lending, to corporate finance and capital markets. Deutsche Bank IPB's drive to support family entrepreneurs underpins IPB's strategic objective of becoming the house of choice for family entrepreneurs.
- June Wong is APAC Head of Lending, Deutsche Bank International Private Bank
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