Investments  

Aberdeen buys out stake in private equity vehicle

Aberdeen buys out stake in private equity vehicle

Aberdeen Asset Management has agreed to purchase SVG Capital’s stake in their joint venture vehicle, Aberdeen SVG Private Equity Managers, for £29m.

Andrew McCaffery, global head of alternatives at Aberdeen Asset Management, said the acquisition is part of the firm’s strategy to consolidate and strengthen its alternatives platform.

He said: “The purchase of the minority stake is a natural progression for Aberdeen in establishing a truly global PE franchise as we look to build on the established foundations of our alternatives platform.”

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The majority of the Aberdeen SVG Private Equity team will be integrated into Aberdeen’s private equity team, led by Graham McDonald.

The combined team of more than 20 investment professionals will oversee total assets under management of £6bn.

The transaction is subject to regulatory notification and is expected to be completed in the first half of 2015.

Background

In February Aberdeen suffered a blow to its active equities business after Morningstar removed the top rating from its flagship emerging market and Asian equity funds.

In an analyst note, Morningstar said in spite of the downgrade the funds represented “some of the best offerings in this space”.