Aberdeen AM has reached an agreement with UK alternative boutique Advance Emerging Capital (AEC) to fully acquire AEC.
The transaction is subject to regulatory approval from the UK Financial Conduct Authority and is to be completed during the fourth quarter of 2015.
AEC manages portfolios of primarily closed end, but also open end, fund-of-fund vehicles. As of 30 June 2015, the company managed £409m (€560.6m) in assets.
Following the transaction Aberdeen will manage 33 closed end funds totalling over £8.5bn (€11.6bn) AuM.
The AEC team includes four investment professionals with over 50 years of combined investment experience. They will be based in Aberdeen’s London office and will be part of the Aberdeen’s alternatives business which is led by Andrew McCaffery.
The team will be independent of Aberdeen’s direct equity and fixed income teams. In line with Aberdeen’s fee policy, the AEC funds will not be double-charged on any Aberdeen funds held in the portfolios.
Martin Gilbert, chief executive at Aberdeen Asset Management, commented: “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.”