Aberdeen Asset Management has revealed plans to buy out a hedge fund for an undisclosed sum.
Aberdeen said the acquisition of Arden Asset Management, which has offices in New York and London, would allow it to offer its clients access to “high quality alternative investments”.
The firm also said the deal would make it a “leading hedge fund investor” with over 30 investment professionals and around £7billion of assets under management for the combined team. Including the firm’s acquisition of Flag Capital Management in May, its alternative investments platform will now counts more than £19billion in assets under management.
Martin Gilbert, the chief executive of Aberdeen, said: “Institutional investors are looking to hedge fund solutions to offer risk/return profiles not available via mainstream strategies and traditional asset classes.
“The deal significantly strengthens our hedge fund solutions capability and expands our global client base.”
Averell Mortimer, the chief executive and chairman of Arden, said he was “thrilled” to be joining the Aberdeen-based firm.
“The deal creates a combined hedge fund platform with international reach overseen by an experienced team of investment and operational professionals. Becoming part of Aberdeen will enable us to share ideas and best practice that will assist in continuing to build on our proven track record of developing customized hedge fund and liquid alternative solutions for clients worldwide,” Mr Mortimer said.
Arden’s clients include corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors. It has a daily liquidity product that was launched in the US in 2012. That product is aimed at providing diversified, alternative investment strategies “allocating to many brand name underlying hedge fund managers”.
Aberdeen said it will complete the deal by the end of the year.