abrdn agrees to sell its European-headquartered Private Equity business to Patria Investments16 October 2023
abrdn today announces that it has agreed to sell its £7.5bn* AUM European-headquartered Private Equity business to Nasdaq-listed Patria Investments.
This sale follows on from a strategic review of our Alternatives business, within which we concluded that the capital generated from the sale of certain of our private equity businesses would be better deployed within our core investment businesses. Evidence of this was demonstrated in our agreed acquisition of specialist healthcare investment adviser Tekla Capital Management in July.
The sale is expected to complete in the first half of 2024.
Stephen Bird, CEO abrdn commented:
“The sale of our European-headquartered Private Equity business to Patria Investments 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 advisor and Macfarlanes LLP served as legal advisor to abrdn.
Latham & Watkins LLP served as legal advisor to Patria.
*as at 30.9.2023
- Upfront consideration comprised of £60 million of cash.**
- Secured deferred consideration of £20 million plus interest of cash to be paid 24 months following completion.**
- Further payment of up to £20 million of cash to be paid subject to the performance of the business 3 years from completion.
** subject to any completion adjustments
Notes to editors
- abrdn is a global investment company that helps clients and customers plan, save and invest for the future. Our purpose is to enable our clients to be better investors.
- abrdn manages and administers £495.7bn of assets for clients (as at 30 June 2023).
- Our strategy is to deliver client-led growth. We are structured around three businesses – Investments, Adviser and Personal – focused on the changing needs of our clients.
- The capabilities in our Investments business are built on the strength of our insight – generated from wide-ranging research, worldwide investment expertise and local market knowledge.
- Our Adviser business provides financial planning solutions and technology for UK financial advisers, enabling them to create value for their businesses and their clients.
- Powered by the UK’s second largest direct-to-consumer investment platform, interactive investor, our Personal business enables individuals in the UK to plan, save and invest in the way that works for them.
About Patria Investments
Patria is a leading alternative investment firm focused on Latin America, with over 30 years of history and combined assets under management of $28.2 billion, and a global presence with offices in 10 cities across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities that allow for portfolio diversification through its Private Equity, Infrastructure, Credit, Public Equities and Real Estate products. Through its investments Patria seeks to transform industries and untangle bottlenecks, generating attractive returns for its investors, while creating sustainable value for society. Further information is available at www.patria.com.
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