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May 27, 2015 at 08:31 AM
Aberdeen Asset Management said Wednesday that it is buying FLAG Capital Management to expand its alternative investment business.
Aberdeen, which has about $491 billion in assets under management, offers institutional and private investors equities, fixed income, property and multi-asset portfolios. FLAG manages private equity and real-asset solutions; it has some $6.3 billion of AUM.
Upon completion of the deal, Aberdeen says its alternatives platform, led by Andrew McCaffery, should have about $21.3 billion in total assets under management. In addition, its global private equity operations will include more than 50 professionals and roughly $15 billion of assets under management.
“Institutional investors are increasingly looking towards alternative asset classes, including private-market allocations, to diversify their portfolios and enhance returns. This transaction is in line with Aberdeen’s strategy of undertaking clear value-added acquisitions that will assist with accelerating business growth in this area,” said Aberdeen CEO Martin Gilbert in a statement.
FLAG supports Aberdeen in two ways, according to Gilbert: “Initially, it strengthens further our private market capability by bringing additional Asian expertise and new U.S. resource. This will also benefit our overall pan-alternatives platform. Secondly, FLAG deepens and expands our U.S. client base, which is a key growth market for Aberdeen.”
