Aberdeen Asset Management has agreed to acquire Arden Asset Management, a hedge fund specialist with offices in New York and London.
The acquisition is part of Aberdeen’s strategy to strengthen and grow its global alternatives platform. Its alternatives space includes multi-manager research and selection across hedge funds, private equity, property and direct investments in infrastructure projects.
Arden creates and manages hedge fund portfolios across the liquidity spectrum using research, portfolio construction and risk management.
In 2012 Arden launched a daily liquidity product in the US market, providing diversified, alternative investment strategies allocating to underlying hedge fund managers.
The business is complementary to Aberdeen’s existing hedge fund offerings and the two teams will be integrated.
The deal, which is subject to regulatory approval, will leave Aberdeen with more than 30 people focusing on hedge funds and approximately US$11bn (£7.04bn) in assets under management for the team.
In May, Aberdeen announced the acquisition of FLAG Capital Management, a private equity and real asset specialist.
Active fund houses are under increasing pressure to deliver outperformance due to the low-cost returns available from passive vehicles and buying in expertise in niche asset classes is seen as one way to address this threat.
