Aberdeen Asset acquires hedge fund in US expansion

Aberdeen Asset Management has ramped up its presence across the Atlantic with the ­acquisition of a US-based hedge fund specialist with offices in New York and London.

Martin Gilbert said the move further diversifies the business. Picture: Neil Hanna

The deal to buy employee-owned Arden Asset Management is expected to complete during the fourth quarter of the year, subject to certain approvals, though the value of the transaction has not been disclosed. It follows May’s acquisition of Flag Capital Management, a specialist in private ­equity and property.

Aberdeen said that the takeover of Arden was in line with its strategy to “strengthen and grow its global alternatives platform”. It will offer clients access to “high quality alternative investments across liquid strategies, private markets and real assets”.

Arden advises on and manages assets on behalf of a range of clients, including corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors.

Following the deal, Aberdeen’s hedge fund investment business will comprise more than 30 professionals and some $11 billion (£7.1bn) of assets under management for the enlarged team.

Martin Gilbert, chief executive of Aberdeen Asset Management, 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.”

Averell Mortimer, chief ­executive and chairman of Arden, said: “We are thrilled to be joining Aberdeen, a leader in the global asset management industry.”