Guggenheim Partners, rapidly developing into an investment bank, under the lead of Alan Schwartz, former chief executive at Bear Stearns, is in exclusive talks to buy Deutsche Asset Management.

According to people familiar with the situation, Guggenheim is most likely to match the €2bln which Deutsche Bank wants to raise from the sale. It is likely Kevin Parker, current chief executive of Deutsche Asset Management, will be given the chance to stay with the organisation, after fighting to turn it round over the last seven years.