Aberdeen Asset Management PLC, an independent asset management company, completed the acquisition of FLAG Capital Management, LLC (FLAG), a diversified private markets manager with offices in Stamford, CT, Boston, MA, and Hong Kong.
Since inception, FLAG has raised over $7 billion of discretionary commitments from its broad client base. FLAG’s investments are focused on venture capital, small- to mid-cap private equity, and real assets in the US, as well as private equity in Asia.
The acquisition is part of Aberdeen’s strategy to grow its alternatives business via multi-manager hedge funds, property and private market allocations, direct infrastructure investments and pan-alternative capabilities.
In addition to the acquisition of FLAG, Aberdeen announced on August 4, 2015 that it had entered into an agreement to acquire Arden Asset Management LLC (Arden), a specialist hedge fund manager and adviser with offices in New York and London. Arden’s clients span corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors. The acquisition is expected to close by the end of 2015.
Following the completion of the Arden transaction, Aberdeen’s alternatives division, under Global Head of Alternatives Andrew McCaffery, will have $30 billion of assets under management.
Formed out of a management buy-out in Aberdeen, Scotland, in 1983, Aberdeen focuses on asset management, including equities, fixed income, property and multi-asset portfolios. It currently operates in over 25 countries across Europe, Asia and the Americas. As of June 30, 2015, the firm manage assets of $483.3 billion on behalf of institutional and private investors.