Bayerische Versorgungskammer faces massive losses from US real estate

The Bayerische Versorgungskammer (BVK), which manages pensions for various professional groups in Bavaria including doctors, pharmacists, and lawyers, is facing significant financial losses due to real estate investments in the United States. The BVK has estimated potential losses of up to 853 million euros from these US property deals. As of late 2025, 392 million euros in losses had already been recorded.

The BVK invested a total of 1.6 billion euros in properties managed by the Munich-based Deutsche Finance Group and developer Michael Shvo. Among the high-risk projects was the Transamerica Pyramid in San Francisco, which has since been sold. The situation has escalated legally, with the Deutsche Finance Group filing a lawsuit against the BVK in Delaware.

Professional associations have expressed concern regarding the impact of these losses on future pensions. Because the BVK is an independent authority, it is overseen by the Bavarian Ministry of the Interior rather than the Federal Financial Supervisory Authority (BaFin). Insured members are currently calling for an independent special audit to clarify the management of these risky financial transactions.