While the future of RREEF Infrastructure, a division of Deutsche Bank Asset Management, remains unclear, the firm continues to expand and has hired energy veteran Michael Madia as a director and operating partner for RREEF Infrastructure Americas.
Infrastructure Investor reported last week that Deutsche Bank has raised the prospect of selling all or part of its €516 billion global asset management group, meaning RREEF could be sold. A source noted a managed buyout (MBO) could be in the cards for RREEF Infrastructure.
Madia, who has already started in his new role, reports to William Reid, managing director and head of RREEF Infrastructure Americas.
“Michael's appointment complements the build-out of the Americas senior leadership team,” said Reid in a press release. “His deep operational and technical background in the highly complex power industry will be critical to our ability to capitalise on the compelling investment opportunities we see in energy infrastructure across North America.”
Madia has three decades of experience in the energy industry, which is where RREEF Infrastructure directs the lion's share of its assets. Most recently, he was the chief operating officer at Fisherman's Energy, where he oversaw project development and financing for wind farm projects. Before that, Madia was at Culminant Energy Development where he advised firms on renewable energy projects and vetted M&A deals.
Deutsche Bank and other asset management firms are under increased scrutiny by regulators amid the changing landscape for asset management globally since the financial crisis began. Investment banks face heightened watch for any behaviour that might resemble the marketing of asset portfolios.
RREEF Infrastructure's North American division was formed in 2010, although the group originated in Sydney, Australia, in 1994. RREEF Infrastructure boasts of some $16.4 billion in assets under management as of the end of the third quarter.