Abrdn sells £7.5bn-asset European private equity unit

Edinburgh investment giant Abrdn announced it agreed to sell its £7.5 billion-asset European headquartered private equity business to Nasdaq-listed Patria Investments.

Abrdn manages and administers £495.7 billion of assets for clients, as at June 30, 2023.

“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,” said Abrdn.

“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.”

Abrdn CEO Stephen Bird said: “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.”

Abrdn said it will be paid an upfront consideration of £60 million in cash, secured deferred consideration of £20 million plus interest of cash to be paid 24 months following completion, and a further payment of up to £20 million of cash to be paid subject to the performance of the business three years from completion.

Patria is an alternative investment firm focused on Latin America, with combined assets under management of $28.2 billion.