Hamburg-headquartered private bank M.M. Warburg has confirmed that it is in talks with a US investor to sell its presence in Luxembourg.
Besides its Swiss offering, Luxembourg is currently M.M. Warburg’s only international presence, the German bank stressed that the deal takes place in a bid to focus on its German business and reduce regulatory complexity.
A spokesperson for M.M. Warburg confirmed to InvestmentEurope that another reason for the sale is the fact that the Luxembourg business specialised in the administration of alternative investment strategies, which no longer constitute a core focus of M.M. Warburg’s growth strategy.
As part of the agreement, the bank is planning to sell its Kapitalverwaltungsgesellschaft (KVG) Warburg Invest Luxembourg as well as Bank M.M. Warburg & CO Luxembourg, which focusses on portfolio administration. The KVG currently manages approximately €22bn as well as more than €7bn on behalf of its German partner business, which will remain a client to the Luxembourg presence after the sale. The Luxembourg Bank oversees the management of more than 300 funds with a combined volume of €23.6bn.