What is Bayerische Versorgungskammer?

Bayerische Versorgungskammer is Germany’s largest public pension group, serving multiple professional schemes in Bavaria. It invests across public markets and alternatives to meet long-term obligations. The current issue involves US property exposures and the need to show strong governance, transparent reporting, and prudent liquidity planning for member security.

How large are the reported losses and where did they occur?

The reported hit is estimated at €690 to €700 million. The losses stem from US office and hotel positions where valuations fell and financing became more expensive. The final impact depends on asset sales, refinancing outcomes, and any potential recoveries still under review.

Will this affect contributions or benefits for members?

Not necessarily in the short term. Outcomes depend on funding ratios, reserve buffers, and performance in other asset classes. If losses persist and offsets fall short, contribution policy could be reviewed. Members should watch official updates and audited statements for any changes to funding and premium guidance.

Did Deutsche Finance Group control the disputed investments?

According to a public clarification, Deutsche Finance Group stated it had no discretionary role in these mandates. The focus is now on mapping responsibilities across all parties and documenting approvals. This will help determine accountability, potential recovery options, and improvements to selection and monitoring processes.

Global Market Insights

Bayerische Versorgungskammer January 12: BVK Faces €700m US Loss

ByDanny Kontos January 12, 2026January 12, 2026

Bayerische Versorgungskammer is confronting potential losses of €690 to €700 million tied to US office and hotel exposures. The situation has prompted management changes, an external review, and preliminary probes. For investors in Germany, this is a clear reminder that overseas property cycles and financing costs can hit home. We explain what is known, why BVK US investments matter for European portfolios, where pension fund oversight is heading, and what to watch as real estate losses are tallied and reported.