In a deal that doubles its private equity assets in one fell swoop, Scotland’s Aberdeen Asset Management has recently purchased U.S.-based FLAG Capital Management, according to Opalesque.
FLAG, which mostly does small to mid-cap private equity and venture capital investments with it’s $6.3 billion assets under management, will be fully integrated into Aberdeen, turning the latter into a $21.3 billion asset manager with $15 billion in private equity alone.
The acquirees seem to be happy as well, with FLAG’s chief executive saying:
“We at FLAG are thrilled to be joining Aberdeen, not only because of its reputation and position as one of the leading global asset management firms, but also because of the clear cultural fit of our two organizations. We believe the combination serves the interests of all of our constituents, particularly our limited partners and the talented team of professionals that have built FLAG into the high-achieving, high integrity firm that attracted Aberdeen in the first place. Simply put, we can think of no better or more appropriate future for all involved. As integral members of Aberdeen’s private markets solutions team, we’re excited to deliver a truly global array of private capital solutions for our investors.”
Aberdeen recently made headlines as investors pulled billions from the firm after emerging market bets unfortunately soured for the company. FLAG, whose fund’s stable revenues Aberdeen claims as having “low risk of outflows,” might get the firm back on track. In addition to it’s Boston and Connecticut offices, FLAG also operates a large Asian private equity business through it’s Hong Kong office.
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