Aberdeen has acquired £13.5bn of long-only multi-manager and fund of hedge fund assets from RBS Asset Management for £84.7m.
The assets under management - at 30 September 2009 - comprised of £9.1bn in long-only multi-manager, £4bn in funds of hedge funds and £400m in other alternatives funds. RBS' existing multi-manager team will work alongside current Aberdeen co-heads of MM Aidan Kearney and Graham Duce.
Aberdeen and RBS Wealth Management have also entered into a minimum five year distribution agreement, principally covering the fund of funds and multi-manager strategies developed by the acquired business.
To re-finance the cash consideration of £84.7m plus associated costs and regulatory capital for the acquisition, Aberdeen has announced a non pre-emptive placing of approximately 84 million new ordinary shares of 10p per share - representing 8.3% of Aberdeen's current issued ordinary share capital.
Aberdeen chief executive Martin Gilbert says Aberdeen has been looking for some time to establish a platform in the alternatives arena.
"This is a well-run business with an excellent distribution network, which has delivered good performance over a number of years," he says.
"This transaction fits with our corporate strategy, a key part of which has been to make earnings enhancing acquisitions to complement organic growth.
"The addition of this leading multi-manager and specialist alternatives resource will significantly strengthen our existing multi-asset and multi-manager capability, an area our clients are looking towards as part of their overall asset allocations."
Valuation
RBS really must have needed the cash. This valuation, at about 0.6% of funds, seems to be at fire sale rates. Even at 50bps AMC it will pay for itself inside 2 years.
If there's anyone out there wanting to sell at the same rates, let me know!!
Posted by: David Cowell
08 Jan 2010 | 09:40
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