4th Aug 2015 14:15
LONDON (Alliance News) - Aberdeen Asset Management PLC's US subsidiary has agreed a deal to acquire Arden Asset Management LLC, a hedge fund specialist that creates and manages hedge fund portfolios, according to a statement on Tuesday.
The move will give Aberdeen's alternative investments platform more than USD30 billion in assets under management when also taking into account its acquisition of FLAG Capital Management, a private equity manager, in May.
FTSE 100-constituent Aberdeen did not disclose the price being paid for Arden.
Martin Gilbert, the chief executive of London-listed Aberdeen, said the acquisition is part of the asset manager's move to diversify its overall business and grow its alternative investments platform.
"Institutional investors are looking to hedge fund solutions to offer risk/return profiles not available via mainstream strategies and traditional asset classes," Gilbert said.
"The deal significantly strengthens our hedge fund solutions capability and expands our global client base. Arden's liquid alternatives platform in the US is particularly attractive as it provides investors with exposure to a portfolio of hedge fund-like strategies but importantly offers daily liquidity," Gilbert added.
Averell Mortimer, the chief executive and chairman of Arden, said he is "thrilled" to be joining Aberdeen.
"The deal creates a combined hedge fund platform with international reach overseen by an experienced team of investment and operational professionals. Becoming part of Aberdeen will enable us to share ideas and best practice that will assist in continuing to build on our proven track record of developing customized hedge fund and liquid alternative solutions for clients worldwide," Mortimer said.
Arden's clients include corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors. It has a daily liquidity product that was launched in the US in 2012. That product is aimed at providing diversified, alternative investment strategies "allocating to many brand name underlying hedge fund managers".
"The business is complementary to Aberdeen?s existing hedge fund solutions capability and the two teams will be fully integrated. This will position Aberdeen as a leading hedge fund investor with over 30 investment professionals and around USD11 billion of assets under management for the combined team," Aberdeen said.
Aberdeen hopes to complete the acquisition in the fourth quarter, and said the deal requires regulatory approval.
Aberdeen shares were down 0.3% at 358.60 pence on Tuesday afternoon in London.
By Samuel Agini; [email protected]; @samuelagini
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