The acquisition is in line with Aberdeen’s strategy to bolster its alternatives capabilities to meet investors’ growing demand to diversify their portfolios.
Based in London, AEC manages portfolios of primarily closed end vehicles such as Advance Developing Markets Fund Limited and Advance Frontier Markets Fund Limited, as well as open end and fund-of-fund vehicles.
As of 30 June 2015, AEC managed £409m across a range of investment funds.
The acquisition is subject to regulatory approval from the UK Financial Conduct Authority.
Upon completion of the acquisition, Aberdeen will manage 33 closed end funds with aggregate AuM of over £8.5bn.
Aberdeen Asset Management CEO Martin Gilbert said: "The acquisition of Advance Emerging Capital brings to Aberdeen a dedicated and highly experienced fund management team, expands further our closed end fund business and adds to the range of alternative investment capabilities we already offer.
"AEC investors will benefit from the management team being part of a larger, independent asset manager and the ability to draw on the Group’s established distribution and operational expertise in regard to closed end funds."
The AEC deal follows Aberdeen’s acquisition of Flag Capital Management, a diversified private markets manager, and the purchase of SVG Capital’s stake in the joint venture Aberdeen SVG Private Equity Managers.
Aberdeen has also agreed to acquire Arden Asset Management, a specialist hedge fund manager and adviser.
Earlier this year, Aberdeen agreed to acquire Parmenion Capital Partners to accelerate its digital ambitions and to grow its investment solutions business.
Image: AEC managed £409m across a range of investment funds. Photo: courtesy of Pong / FreeDigitalPhotos.net.
