Aberdeen Asset Management to buy US private equity firm

Fund manager Aberdeen Asset Management has agreed to buy a private equity firm with bases in the US and Hong Kong.

Aberdeen said acquiring Flag Capital Management would bring additional Asian expertise to the company and deepen its client base in the US.

Flag's focus includes real assets in the US, as well as private equity in the Asia-Pacific region.

Real assets are physical or tangible assets such as commodities, precious metals, real estate and oil.

As of 31 December, US-based Flag managed assets of about $6.3bn on behalf of clients.

Aberdeen chief executive Martin Gilbert said: "Institutional investors are increasingly looking towards alternative asset classes, including private market allocations, to diversify their portfolios and enhance returns.

"This transaction is in line with Aberdeen's strategy of undertaking clear value-added acquisitions that will assist with accelerating business growth in this area."