The move is part of Aberdeen’s plan to grow its global alternatives platform. It remains subject to regulatory approval from the FCA.
Arden creates and manages a range of hedge fund portfolios. The firm has a wide range of clients including corporate and state pension plans, sovereign wealth funds, global bank platforms and retail investors.
Aberdeen said it considers Arden complementary to its existing hedge fund capability and the two teams will be fully integrated into one, with over 30 investment professionals and around $11bn of assets under management.
The deal, which is being executed via Aberdeen’s US arm gives the company ‘immediate entry into portfolios of liquid alternative products in the US’ and adds US-based professionals to its roster.
“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, Aberdeen chief executive. “The acquisition of Arden emphasises further Aberdeen’s commitment to diversifying its overall business and to growing its alternatives platform. The deal significantly strengthens our hedge fund solutions capability and expands our global client base. Arden’s liquid alternatives platform in the US is particularly attractive as it provides investors with exposure to a portfolio of hedge fund-like strategies but importantly offers daily liquidity,” Gilbert added.
“The deal creates a combined hedge fund platform with international reach overseen by an experienced team of investment and operational professionals,” said Averell Mortimer, CEO and chairman of Arden. “Becoming part of Aberdeen will enable us to share ideas and best practice that will assist in continuing to build on our proven track record of developing customized hedge fund and liquid alternative solutions for clients worldwide.”