SLI is to buy 75.1% stake in fund of hedge funds manager Aida Capital.
The £139bn manager says acquiring the controlling stake in Adia, subject to regulatory approval, will give the group's clients access to a wider range of alternative assets.
Aida currently manages the Guernsey-based Aida Open-Ended fund and the Aida Closed-Ended fund, listed on the London Stock Exchange.
The group's existing management team will continue to manage these funds as well as creating and managing fund of hedge fund products for Standard Life Investments and its clients.
SLI chief executive Keith Skeoch says: "Standard Life Investments already has a strong track record in managing alternative assets, with over £8.5bn of commercial property, £4.6bn of private equity and over £2.2bn of global absolute return strategy funds under management.
"We believe that the acquisition of Aida Capital, with its proven track record in managing hedge funds, would present us with a great opportunity to strengthen our alternative capacity."
Sector expected to grow over next decade
Although China's slowing economy has dominated headlines, Jeremy Thomas, co-manager of the Brunner investment trust, highlights the sectors poised for a pick-up
Second-highest beta during Legget's tenure
Exploring case for adding equity crowdfunding securities
FTSE 100 lifted nearly 1%