Luxembourg-based private bank Sal. Oppenheim is closing down its French asset management subsidiary, at a time when the downturn has provoked a wave of consolidation among smaller funds of hedge funds.

Sal. Oppenheim France, a Paris-based operation that runs funds of hedge funds and long-only money, will be shut down, according to people familiar with the situation. The move comes six months after Sal. Oppenheim was bought by Deutsche Bank, in a deal that saw the German bank become the largest wealth manager in Europe. Deutsche Bank declined to comment.