Aberdeen is set to acquire US-based private equity firm Flag Capital Management in order to boost its global alternatives capability.
Buying the private equity and real asset manager, with offices in Boston and Hong Kong, is in line with Aberdeen’s strategy to strengthen and grow its global alternatives platform, bosses said. It follows the acquisition of Scottish Widows Investment Partnership last year.
As of the end of 2014, Flag managed assets of about $6.3bn (£4.1bn) of invested and committed capital, focused on venture capital, small to mid-cap private equity and real assets in the US, as well as private equity in the Asia-Pacific region.
The business will be fully integrated into Aberdeen’s current private markets capability.
Aberdeen’s alternatives platform, overseen by global head of alternatives Andrew McCaffery, will have total assets under management of $21.3bn (£13.8bn) following completion of the transaction.
Martin Gilbert, chief executive of Aberdeen, said the transaction is in line with a strategy of undertaking clear value-added acquisitions that will assist with accelerating business growth in this area, stating that 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.”
Peter Lawrence, chief executive of Flag, added: “As integral members of Aberdeen’s private markets solutions team, we’re excited to deliver a truly global array of private capital solutions for our investors.”