UPDATE 2-RHJ wins Chinese backing to buy Deutsche's BHF unit

* Renews bid to buy BHF from Deutsche Bank

* Secures additional funding from outside investors

* BMW heir, Chinese investors part of renewed bid

* German regulator Bafin still needs to approve deal

FRANKFURT, Sept 20 (Reuters) - Buyout firm RHJ International has secured backing from a Chinese conglomerate and other investors for its acquisition of Deutsche Bank's BHF-Bank unit as it seeks to win over the German regulator who blocked two previous deals.

BHF, which has wealth management, asset management and investment banking operations, will be sold to RHJ's London-based Kleinwort Benson unit for 384 million euros ($501 million) in cash, if regulators approve the deal, Deutsche and RHJ said on Thursday.

For Deutsche Bank, the move forms part of a broader effort to reduce assets and costs. Earlier this month, Germany's largest bank said it would cut bonuses and jobs and hive 125 billion euros in assets into a segregated unit to free up capital.

Selling BHF will reduce Deutsche's risk-weighted assets by about 2 billion euros, and result in capital gains of around 75 million euros, analysts at Espirito Santo Investment Bank said on Thursday.

The deal may also result in a small writedown of less than 100 million euros said Konrad Becker, bank analyst at Merck Finck. But it all hinges on whether regulator BaFin gives its approval. BaFin declined to comment.

RHJ and Deutsche Bank had agreed a deal in March but this was rejected by BaFin, which said it was concerned about RHJ's funding, without going into further detail. The regulator also scotched Deutsche Bank's initial plan to sell BHF to LGT , a bank owned by the royal family of the Alpine principality of Liechtenstein.

On Thursday, RHJ said it had secured additional backing from China's Fosun Group, BMW heir Stefan Quandt and funds controlled by U.S. investor Timothy C. Collins and Blackrock Investment Management.

Belgium-based RHJ said that under the deal, these investors would back a capital increase at Kleinwort Benson, a wealth management unit which RHJ acquired from Commerzbank in 2009 for 225 million pounds ($353.2 million).

Fosun said its investment would help it secure a foothold in Europe.

Two people close to the agreement said the prospective buyer planned to maintain the BHF brand.

Deutsche Bank has been on the lookout for a buyer since it inherited BHF with its 1 billion euro purchase of Sal. Oppenheim in March 2010. Since then, the headcount was reduced to around 1,100 from 1,500 staff.