DWS has named a successor for its longtime head of alternatives, Stefan Kreuzkamp. It was widely reported last week that Kreuzkamp agreed to step down from the organization amid CEO Stefan Hoops’ restructuring of the asset management division. Kreuzkamp has worked at DWS since 1998.
The EUR 126 billion (US$130 billion) firm has poached Paul Kelly from Blackstone, where he was senior managing director and chief operating officer of the credit division, DWS said on Wednesday.
“Paul is an industry veteran with an extensive track record across private and public markets, and we are pleased to have him join DWS to lead our alternatives franchise,” said Hoops, in a statement.
Kelly’s hiring follows DWS’s June decision to appoint Hoops to the CEO post. Hoops, the former head of corporate banking at Deutsche Bank, replaced Asoka Woehrmann amid a regulatory probe into its environmental, social, and governance investment process.
Despite these inquiries, DWS has steadily been growing its alternatives business over the past year and a half, reporting inflows quarterly since the start of 2021. During the third quarter of 2022, the firm has attracted EUR 1 billion, driven by real estate and liquid alternatives products, according to a spokesperson.
“Alternatives will continue its growth trajectory, fueled by the rise in retail demand and the attractive yield opportunities presented in areas such as real assets and private credit,” Hoops said.
All heads of DWS’s alternatives businesses will report to Kelly, who will in turn report to Hoops. Kelly will officially join DWS’s New York team in February.
Kelly joined Blackstone in 2019 after spending just over 19 years at JPMorgan. Like Hoops, Kelly has a background in corporate banking. At JPMorgan, he most recently served as global head of strategic market infrastructure for the corporate and investment bank, his LinkedIn profile shows. He started his career trading equities at Bear Stearns before joining Nomura, where he spent three years.
“I am excited to be joining DWS to lead its alternatives business,” Kelly said in a statement. “With its long-standing investment heritage, global institutional franchise, and established retail position, the alternatives franchise has a robust foundation to capture future growth in private markets.”