Deutsche Bank goes back into unquoted stocks

Deutsche Bank, Morgan Grenfell's embarrassed parent, has taken a stake in Benetton's 21 Investimenti, a firm which invests in fast growing, unquoted companies.

Unlike Mr Young's funds, however, the group - run by Alessandro Benetton, the son of Luciano, Benetton's founder - has a successful track record since foundation in 1993.

It owns the Kappa clothing brand, plus Enervit sports supplements and Albatros whirlpool baths, the European number two to Jacuzzi, with total sales currently of more than 400bn lire (pounds 170m).

The group backs enterprising management teams and aims to do two or three deals a year in strictly consumer-related areas.

With Italy's Bonomi family, it owns the London-based 21 Invest International, which recently looked at buying Lotus.

Deutsche is paying an undisclosed sum for a 5 per cent stake and will bring its international network and contacts to the group, which is controlled by Edizione, the Benetton master company.