Business

Fund Manager Aberdeen Snaps Up Arden To Bolster Hedge Fund Unit

Aberdeen Asset Management announced on Tuesday, August 4th that it was purchasing Arden Asset Management, a well-known U.S. hedge fund operator. The financial terms of the deal were not made public.

According to a statement from Aberdeen, the acquisition will diversify Aberdeen’s business lines and help beef up its hedge fund division’s assets to over $11 billion.

The statement also pointed out that the transaction must be approved by regulators from the UK’s FCA. Moreover, the deal must be approved by the Board of Trustees and shareholders of a number of mutual funds. The transaction is anticipated to be completed by the end of the fourth quarter of  2015.

Also of note, Aberdeen announced it intended to acquire FLAG Capital Management, a private equity and real asset solution firm, earlier this summer. Aberdeen’s alternatives unit, run by Andrew McCaffery, Global Head of Alternatives, will have a new AUM greater than $30 billion after both transactions are finalized.

Aberdeen

Statement from Arden CEO Averell Mortimer

Averell Mortimer, the CEO and Chairman of Arden, noted in the Tuesday statement: “We are thrilled to be joining Aberdeen, a leader in the global asset management industry. 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.”

Comments from Aberdeen Chief Exec Martin Gilbert

Martin Gilbert, the Chief Executive of Aberdeen Asset Management, commented: “Institutional investors are looking to hedge fund solutions to offer risk/return profiles not available via mainstream strategies and traditional asset classes. The acquisition of Arden emphasizes further Aberdeen’s commitment to diversifying its overall business and to growing its alternatives platform. The deal significantly strengthens our hedge fund solutions capability and expands our global client base.  Arden’s liquid alternatives platform in the US is particularly attractive as it provides investors with exposure to a portfolio of hedge fund-like strategies but importantly offers daily liquidity.”

Benefits of Arden deal to Aberdeen

The statement provided by Aberdeen laid out three key benefits from the transaction:

  1. It significantly expands the firm’s alternatives platform and boosts Aberdeen’s position in both the U.S. and international institutional investor market,
  2. It offers immediate entry into profitable portfolios of liquid alternative products in the U.S.,
  3. It adds investment professionals based in the United States who are familiar with an investment process very similar to Aberdeen’s, notably expanding the fund manager’s global platform.