Aberdeen Asset Management has announced it is acquiring U.S.-based alternatives manager, Flag Capital Management in a deal that will gain Aberdeen US$6.3 billion in assets under management (AUM).
The deal, which is scheduled to be closed in the third quarter of this year will bring Aberdeen’s books to exceed $21.3 billion, and will increase its exposure within the U.S. market while adding public and corporate pension plans, family offices, and endowments.
The integration of Flag, which was founded in 1994, has offices on Boston, Stamford, and Hong Kong, and has “considerable experience of natural resources and agriculture investing,” will prove complementary to Aberdeen’s property multi-manager and direct infrastructure business according to Andrew McCaffery, head of Aberdeen.
Historically, Flag, which had acquired Hong Kong-based Squadron Capital Management in 2012, has focused on small and mid-cap private equity, venture capital, real assets in the U.S., and private equity on the Asia-Pacific space.
This is the second acquisition for Aberdeen in as many years, after it agreed to buy the Scottish Widows Investment Partnership in late 2013 for US$735.5 million, taking its real estate business to US$36 billion from US$24.5 billion, and bringing to 7% the portion of the firm’s combined assets of US$515.4 billion allocated to property.
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