HighVista to acquire abrdn's U.S. private markets business

HighVista Strategies agreed to acquire abrdn's U.S. private markets business, with about $4 billion in private equity and venture capital assets moving to the alternative asset manager.

Abrdn Inc., abrdn PLC's U.S. subsidiary, said in a news release that the firm reviewed its private markets business and concluded that the U.S. private equity and venture capital capabilities — acquired under abrdn's 2015 acquisition of FLAG Capital Management — "would be best developed under a different ownership and management structure."

The deal is expected to be completed later this year. Terms were not disclosed, according to abrdn's release and a separate Thursday news release by HighVista.

The deal will bring HighVista's AUM to about $9 billion and adds 30 abrdn staff — about half of whom are investment-focused. Boston-based HighVista has invested in U.S. lower- and middle-market private equity and early-stage venture capital since inception, said Raphael Schorr, partner and deputy CIO, in an interview.

Executives at the firm believe the additional capabilities offer a "compelling source of alpha and differentiated returns," he said. The rationale for bringing on the teams and business is that it bolsters HighVista's capabilities in U.S. private equity and venture capital across sourcing, due diligence and experience, Mr. Schorr said.

Abrdn's global venture capital strategy will continue to be run by Kirsten Morin and Peter Mooradian, co-heads of global venture capital investments at abrdn. Peter Lawrence, co-head global venture capital, will become a senior adviser. The senior U.S. private equity team will continue to manage the U.S. private equity strategy, the HighVista release said. The funds will be branded as HighVista.

"The combination of abrdn's U.S. private equity and venture capital business with HighVista unites two teams that are culturally and philosophically aligned, especially around our investment approach and pursuit of alpha in inefficient markets," said André Perold, CIO, co-founder and partner at HighVista Strategies, in the HighVista release. "Our teams have known each other for years, and we expect this collaboration to lead to significant cross-pollination of investment ideas over time."

Rene Buehlmann, CEO investments at abrdn, said in the firm's release: "Our investments business is focused to capitalise on the key themes shaping the market, through either public markets or alternatives. The sale of $4 billion of assets to HighVista underlines our commitment to exit non-core businesses that no longer align to our overall offering or product strategy."

A spokeswoman for abrdn confirmed that the deal has no impact on the firm's non-U.S. private markets teams or businesses.

Abrdn had £500 billion ($602.9 billion) in assets under management and administration as of Dec. 31, with the investments business running £376 billion.

HighVista's financial adviser was PL Advisors, and the firm's legal adviser was Sidley Austin. Rothschild & Co. was financial adviser and Proskauer Rose was legal adviser to abrdn.