DWS Group (DWS) has acquired a minority stake of 24.9 percent in Arabesque AI Ltd. The UK-based company focuses on Artificial Intelligence (AI) to predict stock price developments via its proprietary AI engine, combining big data, machine learning, and high-performance computing. In addition, both companies have agreed on a strategic partnership to enhance the capabilities of the AI engine, and to develop sophisticated AI-based investment solutions.
Both parties have agreed to maintain confidentiality on the price of the transaction and further financial details. Closing of the transaction has already taken place.
Key to the partnership will be the ongoing development of the AI engine, combining DWS’ investment expertise with Arabesque AI’s machine-learning and high-performance computing capabilities. Furthermore, innovative investment products and services that use the AI engine will be jointly developed. For this, both parties have agreed to establish an expert working group for ongoing collaboration. As part of the cooperation, both parties intend to work exclusively on new projects together. With this move, DWS strengthens its AI knowledge and capabilities going forward and – as promised at our Investor Update earlier in December – DWS will accelerate its digital readiness efforts.
“The strategic partnership with Arabesque AI is the next step towards the digitalization of DWS. It will clearly strengthen our digital capabilities and, in particular, our Artificial Intelligence know-how. We will be able to harness disruptive technology within the asset management industry for our advantage”, said Asoka Woehrmann, CEO of DWS. He added, “In the future, the AI engine will deliver innovative signals that will help us identify additional alpha sources, and will enable us to make smarter decisions.”
Dr Yasin Rosowsky, Co-CEO of Arabesque AI, said, “Artificial Intelligence is rapidly shaping global asset management, with investors increasingly exploring how to harness the power of AI technology to gain a competitive edge. We are delighted to welcome DWS Group as a strategic partner of Arabesque AI, combining their vast investment expertise with our AI technology to deliver market-leading AI powered portfolios and services.”
“This partnership will see us collaborate with DWS Group on innovative new AI-based solutions, as well as expanding the current capabilities of the Arabesque AI engine”, added Dr Qasim Nasar-Ullah, Co-CEO of Arabesque AI. “AI will transform portfolio management, and has the potential to further the mainstreaming of ESG across global markets.”
Last year DWS invested in a minority stake in Arabesque S-Ray GmbH, an ESG data provider, and entered into a strategic partnership for the development of new ESG data products and services. With this suite of investments, DWS is following through in strengthening its ESG and digital capabilities, as announced at last year’s Annual General Meeting.
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About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 752bn of assets under management (as of 30 September 2019). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.
DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.
About Arabesque AI
Arabesque AI is an investment advisory and technology company, headquartered in the UK, that emulates human decisions in finance and portfolio management through its proprietary Artificial Intelligence (AI) Engine. The AI Engine is used to evaluate and forecast investment opportunities in the financial markets, and is architected as a massively parallel and distributed system spread across thousands of machines in multiple datacenters. The company’s mission is “General AI for finance” as well as always incorporating sustainability factors within its investment strategies.
Arabesque AI is majority-owned by the Arabesque Group, a global group of fintech companies providing a range of sustainable investment and data services.