abrdn sells off European-headquartered private equity business

Written by Michael Griffiths

16/10/2023

abrdn has agreed to sell its European-headquartered private equity business to alternative asset management firm, Patria Investments.

The upfront consideration is comprised of £60m of cash and there is also a secured deferred consideration of £20m plus interest of cash to be paid 24 months after the deal’s completion.

A further payment of up to £20m of cash is to be paid subject to the performance of the business three years after the completion of the deal, which is expected to go through in the first half of 2024.

abrdn manages and administers £495.7bn of assets for clients, with its European-headquartered private equity business consisting of £7.5bn in assets under management (AuM).

The sale follows a strategic review by abrdn of its alternatives business, which saw the investment group conclude that the capital generated from the sale of its private equity businesses would be better deployed within its core investment businesses.

abrdn suggested that evidence of this was demonstrated in its agreed acquisition of specialist healthcare investment adviser, Tekla Capital Management, in July.

Patria, an alternative investment firm focused on Latin America, has a combined AuM of $28.2bn, and a global presence with offices in 10 cities across 4 continents.

abrdn CEO, Stephen Bird, said: “The sale of our European-headquartered private equity business to Patria closely follows the completion of the sale of our US-headquartered private equity business to High Vista Strategies.

“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 and Macfarlanes LLP served as legal adviser to abrdn. Latham & Watkins LLP served as legal adviser to Patria.

Related Articles