Aberdeen Standard Investments agreed to acquire 5% stake in Gresham House, according to a joint statement Thursday.
The transaction is conditional upon the public equity manager obtaining shareholder permission to issue new ordinary shares at the company's annual meeting May 16. Aberdeen Standard will purchase 1,309,598 new ordinary shares in Gresham House at 496 pence per ordinary share.
Aberdeen Standard will also partner with Gresham House, which has £2.3 billion ($3 billion) in assets under management, to invest in small-cap equity.
The money managers will form a joint venture to boost their distribution capabilities through a public equity platform, which takes significant stakes in small businesses to help turn them around.
"This joint venture offers Gresham House access to a powerful distribution network and an industry-leading product development capability," Gresham House CEO Tony Dalwood said in the statement.
"The establishment of this joint venture is in reaction to client demand for exposure to the increasing opportunities in strategic public equity," said Peter McKellar, global head of private markets at Aberdeen Standard Investments, in the statement.
"We identified Gresham House as a compelling joint venture partner based on a belief that working with a team with their experience, depth of resource and strong track record can deliver a compelling investment opportunity for clients," he said.
