Aberdeen Standard Investments (ASI) has teamed up with private equity firm 21 Partners to launch a ‘patient capital’ private equity fund later this year.
The two firms have set up a UK-based 50:50 joint venture called 21ASI in order to run the fund, which is expected to raise around €1 billion (£881 million).
The fund’s focus will be on providing patient capital for the long-term, but it will also target opportunistic, time-sensitive transactions or ‘special opportunities’ which have a shorter investment horizon.
Standard Life Aberdeen co-chief executive Martin Gilbert (pictured) said 21 Partners is one of the ‘most reputable figures in the private equity industry’ and that its own involvement will ‘greatly enhance the marketability of the product’.
He added: ‘This is an exciting opportunity to provide a direct private equity offering to our clients.
‘There is a clear demand from them for private markets products which offer attractive returns and important diversification.’
The fund aims to support and help grow companies without owners ceding majority stakes in their business, and will focus on European companies with a fund term of up to 15 years.
Beyond funding, 21ASI said it will provide portfolio firm with support to help them cope with managing their growth, potential disruption in their industries, and challenges posed by succession and generational changes in their companies.
The board of the JV will be led by 21 Partners founder and managing director Alessandro Benetton, with the members drawn equally from both JV partners.
The JV comes after ASI launched a UK employment opportunities fund with Big Issue Invest last month.