27th May 2015 12:42
LONDON (Alliance News) - Aberdeen Asset Management PLC on Wednesday said it has entered into a deal to acquire private equity and real estate asset manager FLAG Capital Management LLC for an undisclosed amount.
FTSE 100-listed Aberdeen said the acquisition will boost its global alternatives platform via multi-manager coverage of hedge funds, property and private market allocations, infrastructure investments and pan-alternative capabilities. FLAG's private equity teams in the US and Asia also will supplement Aberdeen's existing private equity services.
At the end of December, FLAG had around USD6.3 billion in assets under management, and the acquisition will mean Aberdeen now has USD15 billion in private equity assets under management and USD21.3 billion in alternative 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 Chief Executive Martin Gilbert.
Shares in Aberdeen were up 0.5% to 448.90 pence on Wednesday afternoon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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