Assets review

Abrdn sells European private equity unit for £100m

Stephen Bird
Stephen Bird: reducing complexity

Abrdn, the Edinburgh-based investment company is selling its European-headquartered private equity business to Nasdaq-listed Patria Investments in a deal worth up to £100 million.

The division has £7.5 billion of assets under management and its sale follows a strategic review of Abrdn’s alternatives business.

It concluded that the capital generated from the sale of certain of private equity businesses would be better used within the core investment businesses.

It said evidence of this was demonstrated in the agreed acquisition of specialist healthcare investment adviser Tekla Capital Management in July.

The company sold its US-headquartered private equity business to High Vista Strategies.

Stephen Bird, CEO of Abrdn, said: “This latest sale marks further progress in the reshaping of our Investments business in line with previous guidance. We are continuing to reduce complexity and are focusing on areas where we are confident we can drive growth in the future.”

Rothschild & Co served as financial adviser to Abrdn and Macfarlanes provided legal advice. Latham & Watkins served as legal adviser to Patria.

Key terms:

  • Upfront consideration comprised of £60m of cash.
  • Secured deferred consideration of £20m plus interest of cash to be paid 24 months following completion.
  • Further payment of up to £20m of cash to be paid subject to the performance of the business three years from completion.

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