Aberdeen Asset Management said Tuesday that it has entered into a deal to acquire hedge funds-of-funds manager Arden Asset Management, expanding its alternatives platform and its footprint in the U.S.
Under the deal, Aberdeen’s hedge funds assets under management will increase to about $11 billion, up from about $1 billion, an Aberdeen spokeswoman said. It also will give Aberdeen, with about £307.3 billion ($476.4 billion) in total assets under management, immediate entry into liquid alternative strategies in the U.S.
Arden, which has offices in New York and in London, has 49 employees. Those employees are expected to transfer to Aberdeen, the spokeswoman said. The newly combined hedge fund unit of Aberdeen will have more than 30 investment professionals.
Terms of the deal were not disclosed.
Arden is currently employee-owned, and staff members have certain employment contracts under the deal. The spokeswoman said the terms of the contracts were confidential.
The deal is subject to regulatory approval from the Financial Conduct Authority in the U.K., and notification to the Irish Central Bank. Approval from the board of trustees and shareholders of certain mutual funds also is required. Aberdeen said in a statement that the deal is expected to close during the fourth quarter of 2015.
The senior management team within the combined investment team will report to Andrew McCaffery, global head of alternatives at Aberdeen, the spokeswoman said.
Pakenham Partners and Willkie Farr & Gallagher were financial adviser and legal adviser to Aberdeen. Morgan Stanley and Davis Polk & Wardwell were financial adviser and legal adviser to Arden.
“Institutional investors are looking to hedge fund solutions to offer risk/return profiles not available via mainstream strategies and traditional asset classes,” said Martin Gilbert, CEO at Aberdeen, in the statement. “The acquisition of Arden emphasizes further Aberdeen’s commitment to diversifying its overall business and to growing its alternatives platform.”