Key Takeaways
- • Aberdeen Asset Management, a $483 billion U.K.-based investment firm, agreed to acquire Arden Asset Management, a $11.5 billion liquid alternatives specialist founded in 1993, to expand its hedge-fund solutions capability and global client base.
- • Arden's founding team of approximately 50 people, led by founder Averell Mortimer, will join Aberdeen and report to Andrew McCaffery, the firm's global head of alternatives, with Mortimer's expertise in hedge fund-of-funds and liquid alternatives strategies becoming integrated into Aberdeen's platform.
- • The acquisition strengthens Aberdeen's hedge fund solutions offerings at a time when fund-of-funds strategies have faced structural headwinds, declining from 43% of hedge fund industry assets in 2007 to 23% of the nearly $3 trillion market today, with no net deposits since 2007.
- • Arden's $11.5 billion AUM includes over $1 billion in open-end mutual funds investing with hedge fund managers, including the firm's liquid alternatives fund launched in 2012, which addresses demand from retail investors and 401(k) plan sponsors seeking alternative investment exposure.
- • The deal represents Aberdeen's continued strategic expansion in alternatives, following the firm's 2011 acquisition of Robeco Group's $1.3 billion fund-of-funds business and 2009 purchase of $1.1 billion in hedge fund investments from JPMorgan Chase, building toward a broader alternatives platform encompassing private equity, real estate, and infrastructure.
Summary
Aberdeen Asset Management announced the acquisition of Arden Asset Management, a New York-based liquid alternatives specialist managing $11.5 billion in assets under management. The deal expands Aberdeen's hedge-fund solutions platform and represents a strategic move to strengthen its alternatives capabilities at a time when the fund-of-funds sector faces significant headwinds. Arden's founding team, including founder Averell Mortimer, will join Aberdeen's alternatives division and report to global head of alternatives Andrew McCaffery.
Arden has carved a specialized niche in an industry challenged by structural decline. Fund-of-funds strategies, which once represented 43% of hedge fund assets in 2007, have contracted to just 23% of the nearly $3 trillion invested in hedge funds today, with the sector experiencing negative net deposits for nearly two decades. To counter this trend, Arden pioneered liquid alternatives vehicles, including open-end mutual funds investing with hedge fund managers and multi-strategy solutions. The firm's approximately $1 billion in open-end mutual funds and broader $11.5 billion AUM reflect this strategic pivot toward retail-accessible and 401(k)-compatible alternative products.
Aberdeen's acquisition of Arden follows a deliberate strategy of building scale in alternatives. In 2011, Aberdeen acquired Robeco Group's $1.3 billion fund-of-funds business, and in 2009 purchased $1.1 billion in hedge fund investments from JPMorgan Chase. These moves have positioned Aberdeen to currently manage approximately $1.3 billion in hedge fund-focused products. The Arden acquisition materially expands this footprint while adding Mortimer's deep expertise in structuring alternatives for institutional and retail distribution channels. CEO Martin Gilbert noted the acquisition "significantly strengthens our hedge fund solutions capability and expands our global client base," indicating Aberdeen's commitment to competing across both institutional and mass-market alternative investment channels. The firm's broader alternatives platform now encompasses private equity, real estate, infrastructure, and hedge fund strategies across multiple distribution models.
Arden has carved a specialized niche in an industry challenged by structural decline. Fund-of-funds strategies, which once represented 43% of hedge fund assets in 2007, have contracted to just 23% of the nearly $3 trillion invested in hedge funds today, with the sector experiencing negative net deposits for nearly two decades. To counter this trend, Arden pioneered liquid alternatives vehicles, including open-end mutual funds investing with hedge fund managers and multi-strategy solutions. The firm's approximately $1 billion in open-end mutual funds and broader $11.5 billion AUM reflect this strategic pivot toward retail-accessible and 401(k)-compatible alternative products.
Aberdeen's acquisition of Arden follows a deliberate strategy of building scale in alternatives. In 2011, Aberdeen acquired Robeco Group's $1.3 billion fund-of-funds business, and in 2009 purchased $1.1 billion in hedge fund investments from JPMorgan Chase. These moves have positioned Aberdeen to currently manage approximately $1.3 billion in hedge fund-focused products. The Arden acquisition materially expands this footprint while adding Mortimer's deep expertise in structuring alternatives for institutional and retail distribution channels. CEO Martin Gilbert noted the acquisition "significantly strengthens our hedge fund solutions capability and expands our global client base," indicating Aberdeen's commitment to competing across both institutional and mass-market alternative investment channels. The firm's broader alternatives platform now encompasses private equity, real estate, infrastructure, and hedge fund strategies across multiple distribution models.
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