Aberdeen Asset Management is to purchase SVG Capital plc’s stake in their joint venture vehicle, Aberdeen SVG Private Equity Managers Limited (Aberdeen SVG Private Equity) for GBP29 million.
In May 2013, Aberdeen acquired a 50.1% stake in Aberdeen SVG Private Equity from SVG Capital plc with the option of acquiring the remaining 49.9% stake.
The transaction is part of Aberdeen’s strategy to consolidate and strengthen further its alternatives platform which provides multi-manager coverage of hedge funds, property and private equity allocations, infrastructure investments and Pan-Alternative capabilities.
The majority of the Aberdeen SVG Private Equity team will be fully integrated into Aberdeen’s private equity team, led by Graham McDonald. The combined team of over 20 investment professionals will oversee total assets under management of GBP6 billion.
The transaction is subject to regulatory notification and certain other customary matters and is expected to be completed in the first half of 2015.
Andrew McCaffery, Global Head of Alternatives at Aberdeen Asset Management, says: “The purchase of the minority stake is a natural progression for Aberdeen in establishing a truly global PE franchise as we look to build on the established foundations of our alternatives platform. Institutional investors are increasingly looking towards alternative asset classes, with access to private markets being a key element of diversifying their portfolios and enhancing returns.”