Aberdeen Asset Management PLC Acquisition - FLAG Capital Management, LLC (3795O)
May 27 2015 - 8:34AM
UK Regulatory
TIDMADN
RNS Number : 3795O
Aberdeen Asset Management PLC
27 May 2015
Aberdeen Asset Management PLC (Aberdeen) is pleased to announce
it has entered into an agreement to acquire FLAG Capital
Management, LLC (FLAG), a manager of private equity and real asset
solutions with offices in Stamford CT, Boston, MA, and Hong
Kong.
This acquisition is in line with Aberdeen's strategy to
strengthen and grow its global alternatives platform and solutions
provision via multi-manager coverage of hedge funds, property and
private market allocations, infrastructure investments and
pan-alternative capabilities. FLAG's well-established private
equity teams in the U.S. and Asia will help broaden Aberdeen's
private markets solutions activity within the alternatives
arena.
As of December 31, 2014, FLAG managed assets of approximately
$6.3 billion of invested and committed capitalon behalf of its
broad client base. FLAG is a diversified private markets solutions
business focused on venture capital, small- to mid-cap private
equity, and real assets in the U.S., as well as private equity in
the Asia-Pacific region. The business will be fully integrated into
Aberdeen's current private markets capability. This will position
Aberdeen as a leading global private equity investor with over 50
investment professionals and roughly $15 billion of assets under
management.
Aberdeen's alternatives platform, overseen by Andrew McCaffery,
Global Head of Alternatives, will have total assets under
management of $21.3 billion following completion of the
transaction.
The transaction provides key benefits to Aberdeen:
-- The addition of FLAG's U.S.- and Asia-focused investment
capability, combined with Aberdeen's strength in Europe, will offer
clients a compelling global private markets solutions
proposition;
-- FLAG's long-established presence across the institutional and
high-net-worth client segments in the U.S. increases Aberdeen's
exposure to the region and enhances the footprint among family
offices, endowments and public and corporate pension plans;
-- We believe FLAG's expertise in successfully launching private
equity and real asset-linked products will permit Aberdeen to
accelerate organic growth in this business segment;
-- FLAG's funds bring highly stable revenues that are at low
risk of outflows; once launched, each fund's revenue stream is
defined, based on committed capital and a fixed fee schedule over
the multiple-year life of the fund, which typically is set at 12
years;
-- The integration of FLAG's investment platform boosts
Aberdeen's pan-alternatives capability, allowing Aberdeen to
provide to its client base a full range of private markets
solutions.
The transaction, which is currently expected to close in the
third quarter of 2015, is subject to regulatory approval from the
Hong Kong Securities and Futures Commission (SFC) and submission of
a Hart-Scott-Rodino filing with the U.S. Department of Justice and
the Federal Trade Commission.
Pakenham Partners served as financial advisers to Aberdeen on
this transaction; Berkshire Capital served as financial advisors
for FLAG.
Commenting on the transaction, Martin Gilbert, Chief Executive
of Aberdeen, said: "Institutional investors are increasingly
looking towards alternative asset classes, including private market
allocations, to diversify their portfolios and enhance returns.
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 U.S.
resource. This will also benefit our overall pan-alternatives
platform. Secondly, FLAG deepens and expands our U.S. client base,
which is a key growth market for Aberdeen."
For further information, contact
Maitland + 44 (0) 20 7379 5151
Neil Bennett
Tom Eckersley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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