Aberdeen ramps up growth strategy with double acquisition

Aberdeen Asset Management has agreed to buy US asset manager Artio Global Investors, and take a majority stake in private equity fund of funds business SVG.

Aberdeen will pay around £112m in cash for Artio, which had roughly £9.2bn in retail and institutional assets under management as of 31 December 2012.

That asset base includes a £2.9bn global equities business and a £6.3bn fixed income division. Artio’s global high yield and investment grade teams are expected to join Aberdeen upon completion of the deal.

Artio has a net asset value of £90m, with cash and seed investments of £87m as at 31 December, Aberdeen said.

“This acquisition will expand Aberdeen’s North American business, deepen its distribution network in the region and add to its existing fixed income capabilities,” the group said in a statement.

Aberdeen intends the deal to complete by the end of Q2 or start of Q3 2013, and said it expects the acquisition to be “earnings enhancing from the outset”.

Separately, the group has agreed to purchase a 50.1% stake in SVG Advisers for £17.5m in cash, adding £4bn in private equity fund of funds business to its existing £700m business.

Lynn Fordham, chief executive of SVG parent SVG Capital, will head up the combined business, named Aberdeen SVG Private Equity.

Aberdeen also has the option of acquiring the remaining 49.9% stake in SVG at any time from the third anniversary of the deal’s completion for between £20 and £35m.

 

This article was first published on Investment Week

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