Aberdeen Asset Management has agreed to acquire FLAG Capital Management (FLAG), a private equity manager with US and Asia-focused investment capability.
The acquisition of FLAG, which manages assets worth $6.3bn, will facilitate Aberdeen to improve its hedge fund, property, private markets, infrastructure and pan-alternative offerings.
Following the acquisition for an undisclosed amount, Aberdeen’s alternatives platform, overseen by global head of alternatives Andrew McCaffery, will have total assets under management of $21.3bn.
The transaction will benefit Aberdeen to gain exposure in the US and expand its footprint among family offices, endowments and public and corporate pension plans leveraging FLAG’s long-established presence across the institutional and high-net-worth client segments in the region besides adding stable revenues.
The deal, which is subject to regulatory approval, is expected to close in the third quarter of 2015.
Aberdeen CEO Martin Gilbert said: "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.
"FLAG meets this objective in two ways. Initially, it strengthens further our private market capability by bringing additional Asian expertise and new US resource. This will also benefit our overall pan-alternatives platform. Secondly, FLAG deepens and expands our US client base, which is a key growth market for Aberdeen."