DB Capital, Deutsche Bank's direct private equity investment arm, has a very slim chance of completing a buy-out, with the bank preferring a piecemeal disposal of the €3.5bn ($3.4bn) portfolio, according to sources close to the bank.

A management buy-out led by Graham Clempson and Ted Virtue, DB Capital's leaders, has been mooted but sources close to the bank say it is less likely than the alternatives of disposal or winding the portfolio down.