Aberdeen strikes deal to raise £100m for new fund launches

Aberdeen strikes deal to raise £100m for new fund launches

Aberdeen Asset Management is looking to raise £100m from a major shareholder to generate seed money for a wave of upcoming fund launches.

The asset manager has struck a deal with Mitsubishi UFJ Trust and Banking (MUTB) in which the Japanese firm buys £100m worth of non-voting preference shares from Aberdeen.

Aberdeen said the deal would allow it “to provide additional seed capital (either directly or through its affiliates) for the purpose of launching such new funds as may be thought appropriate to meet customer needs”.

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The firm said the need for seed capital on new products would mean the funds were “launched at a level at which they will be considered credible by the group’s larger distribution partners and advisors”.

Aberdeen’s chief executive Martin Gilbert said: “Last year’s acquisition of Scottish Widows Investment Partnership has provided us with a broader range of capabilities, which we aim to develop further.

“To do this effectively it is important we support new fund launches with seed money, demonstrating our commitment to them.”

The company added the issuance would count towards the regulatory capital requirements placed on the asset manager, meaning it would be “well placed to accommodate any future changes to applicable capital adequacy laws”.

The issuance is subject to shareholder approval.