Advance Emerging Capital, which managed £409 million across a range of investment funds as of 30 June, is the latest buy for Aberdeen after it secured the takeover of IFP corporate member Parmenion on 4 September. No fee has been disclosed for either.
AEC is a London based firm with “nearly two decades of experience managing investments on behalf of a wide range of investors”.
The AEC team will be based in Aberdeen’s London office and will become part of the group’s growing alternatives business which is led by Andrew McCaffery. The team will be independent from Aberdeen’s direct equity and fixed income teams. Since AEC invests in a number of Aberdeen vehicles, investors will not be double-charged on these investments in Aberdeen funds.
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Martin Gilbert, chief executive of Aberdeen, said: “The acquisition of Advance Emerging Capital brings to Aberdeen a dedicated and highly experienced fund management team, expands further our closed end fund business and adds to the range of alternative investment capabilities we already offer.
“AEC investors will benefit from the management team being part of a larger, independent asset manager and the ability to draw on the Group’s established distribution and operational expertise in regard to closed end funds.”
As at 30 June 2015, Aberdeen managed total assets of £307 billion on behalf of institutional and private investors. Following the transaction Aberdeen will manage 33 closed end funds with aggregate assets under management of over £8.5 billion.
Nasser Alshawaf, chairman and chief executive officer of Advance Emerging Capital said: “The confidence expressed by Aberdeen in AEC is a reflection of the team’s capabilities and competitiveness. As part of Aberdeen, the team will be able to add even more value to investors. I am highly confident that the AEC team will continue to serve its investors with the same vigour and diligence and, in so doing, continue to generate superior returns.”
Andrew Lister, co-chief investment officer of Advance Emerging Capital, said: “Aberdeen is an investment house we have immense respect for, and with which we share a similar investment philosophy and appreciation of the benefits of the closed end fund structure.
“We are therefore delighted to be joining them, where we will continue to implement our current strategy and process with significant additional support provided by Aberdeen’s Closed End Funds team and the operational infrastructure that comes with being part of a FTSE 100 company. Sitting within Aberdeen’s rapidly growing Alternatives business will, we believe, enable us to share ideas and best practice to the benefit of our existing investors.”
The deal is subject to regulatory approval from the UK Financial Conduct Authority. The transaction should be completed during the fourth quarter of 2015.