Abrdn Sells US Private Markets Business to HighVista Strategies

U.K. investment giant Abrdn, formerly Standard Life Aberdeen, has agreed to sell its U.S. private markets business to alternative asset manager HighVista Strategies. The financial terms of the deal were not disclosed.

Under the agreement, Abrdn plc’s U.S. subsidiary will transfer the management of approximately $4 billion in assets under management and 30 employees to HighVista Strategies LLC.

Abrdn, which manages approximately 376 billion pounds ($483.5 billion) in assets, stated that following a comprehensive business review of its private markets business, it concluded that the U.S. private equity and venture capital business, which it acquired when it bought Flag Capital in 2015, would be best developed under a different ownership and management structure.

“Our investments business is focused to capitalize on the key themes shaping the market, through either public markets or alternatives,” René Buehlmann, abrdn’s CEO of investments, said in a statement. “The sale of $4 billion of assets to HighVista underlines our commitment to exit non-core businesses that no longer align to our overall offering or product strategy.”

HighVista will acquire the U.S. private markets business of abrdn Inc., including the U.S. private equity and venture capital assets, as well as the investment and operational teams. According to HighVista, the deal, which is expected to close later this year, will increase its assets under management to approximately $9 billion. The firm specializes in alternative investments in less efficient markets and invests on behalf of pensions, insurers, sovereign wealth funds, family offices and high-net-worth individuals and families.

Kirsten Morin and Peter Mooradian, co-heads of abrdn’s global venture capital investments, will continue to manage the global venture capital strategy, and abrdn’s Peter Lawrence will become a senior adviser. The senior U.S. private equity team, which includes John Dickie, Scott Reed, Whit Matthews, Rob Nagle and Ryan Tiffany, will continue to manage the U.S. private equity business.

“The combination of abrdn’s U.S. private equity and venture capital business with HighVista unites two teams that are culturally and philosophically aligned, especially around our investment approach and pursuit of alpha in inefficient markets,” André Perold, CIO, co-founder and partner in HighVista Strategies, said in a release. “Our teams have known each other for years, and we expect this collaboration to lead to significant cross-pollination of investment ideas over time.”