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Aberdeen acquires Artio Global and SVG
by David Campbell on Feb 14, 2013 at 10:12
Aberdeen has bought US fixed income manager Artio Global Investors and taken a controlling 50.1% interest in SVG Advisers.
Both the $175 million (£112 million) purchase of Artio and £17.5 million stake in SVG will be funded out of Aberdeen's cash reserves.AT 8.40 shares in Aberdeen were up 1.18% at 420.9p in an otherwise flat market.
Both purchases will broaden Aberdeen's capabilities, enhancing its fixed income services private equity services. The Artio transaction will also deepen its exposure to North America, approximately doubling its US wholesale representation.
Artio manages around $14.3 billion on behalf of both institutional and retail investors, while SVG oversees around £4 billion.
Aberdeen chief executive Martin Gilbert said: 'The integration of Artio’s operations will strengthen further our US fixed income expertise, in particular the addition of US total return and global high yield products, and will help to broaden and deepen our distribution network in the US.'
Aberdeen will hold the right to purchase the outstanding shares of SVG from early 2016. The business will be integrated within Aberdeen's privatye equity fund-of-funds team, which currently runs £700 million.
'This is an exciting development for both SVGA and Aberdeen,' said SVG chief executive Lynn Fordham.
'Combined, SVGA’s long-established private equity expertise and Aberdeen’s global distribution network and fund management capability will create a solid platform from which the Aberdeen SVG franchise can grow. I look forward to working with the Aberdeen team in what I am confident will mark the start of an exciting union with significant potential.'
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