Aberdeen acquires Arden Asset Management in US expansion move

The deal, for an undisclosed sum, will boost Aberdeen’s hedge fund unit’s assets from $2 billion to $11 billion and is in line with Aberdeen’s strategy to strengthen and grow its global alternatives platform encompassing multi-manager research and selection across hedge funds, private equity, and property along with direct investments in infrastructure projects.

A statement from Aberdeen accompanying the announcement said the acquisition will mean “Aberdeen can offer its clients access and exposure to high quality alternative investments across liquid strategies, private markets and real assets”.

Arden is a hedge fund specialist that creates and manages hedge fund portfolios across the liquidity spectrum using its proprietary manager selection and portfolio construction processes, and advises on and manages assets on behalf of a wide range of clients, including corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors.

Aberdeen said the business is complementary to its own existing hedge fund solutions capability and the two teams will be fully integrated in order to position Aberdeen as a leading hedge fund investor with over 30 investment professionals and around $11 billion of assets under management for the combined team.

The latest Aberdeen purchase follows May’s acquisition of FLAG Capital Management, a manager of private equity and real asset solutions.

Aberdeen’s alternatives platform, overseen by Andrew McCaffery, Aberdeen’s global head of alternatives, will have total assets under management of over $30 billion following completion of both transactions.

Martin Gilbert, Chief Executive of Aberdeen Asset Management PLC, said: “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 emphasises 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.”

Averell Mortimer, CEO & Chairman of Arden, said: “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.”

The Arden deal is expected to complete in the fourth quarter of this year, subject to approval by regulators, trustees and shareholders of certain mutual funds.

Pakenham Partners and Willkie Farr & Gallagher served as financial advisor and legal advisor to Aberdeen on the transaction, while Morgan Stanley and Davis Polk & Wardwell served as financial advisor and legal advisor to Arden.