UK - Aberdeen has acquired £13.5bn (US$21.6bn) of long-only multi-manager and fund of hedge fund assets from RBS Asset Management for £84.7m.
The assets under management - at September 30, 2009 - comprised of £9.1bn in long-only multi-manager, £4bn in funds of hedge funds and £400m in other alternatives funds. RBS' existing multi-manager team will work alongside current Aberdeen co-heads of multi-management Aidan Kearney and Graham Duce.
Aberdeen and RBS Wealth Management have also entered into a minimum five year distribution agreement, principally covering the fund of funds and multi-manager strategies developed by the acquired business.
To re-finance the cash consideration of £84.7m plus associated costs and regulatory capital for the acquisition, Aberdeen has announced a non pre-emptive placing of approximately 84 million new ordinary shares of 10p per share - representing 8.3% of Aberdeen's current issued ordinary share capital.
Aberdeen chief executive Martin Gilbert says Aberdeen has been looking for some time to establish a platform in the alternatives arena.
"This is a well-run business with an excellent distribution network, which has delivered good performance over a number of years," he says.
"This transaction fits with our corporate strategy, a key part of which has been to make earnings enhancing acquisitions to complement organic growth.
"The addition of this leading multi-manager and specialist alternatives resource will significantly strengthen our existing multi-asset and multi-manager capability, an area our clients are looking towards as part of their overall asset allocations."
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