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abrdn PLC on Tuesday said it has agreed to acquire four closed-end funds from First Trust Advisors LP, adding around £600 million in assets under management.
abrdn is an Edinburgh-based investor and asset manager. Subject to approval by the shareholders of the respective funds, it said the four closed-end funds will be reorganised into existing abrdn funds.
Specifically, abrdn Global Infrastructure Income Fund will acquire Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund, abrdn Income Credit Strategies Fund will acquire First Trust High Income Long/Short Fund and First Trust/abrdn Global Opportunity Income Fund, while abrdn Total Dynamic Dividend Fund will acquire First Trust Specialty Finance and Financial Opportunities Fund.
abrdn said the transaction will further strengthen its closed-end fund business, which currently has around £23.8 billion in assets under management in US and UK-listed closed-end funds.
‘The acquisition of these four closed-end funds is another clear statement of intent from abrdn, as we continue to focus on the areas of investing where we have global scale and competitive advantage. We are already the third-largest manager of closed-end funds globally, and this marks the third acquisition we have done in this space over the past 12 months,’ said abrdn Chief Executive Officer Stephen Bird.
‘By consolidating these funds into existing abrdn funds, we bring economies of scale. And we are adding approximately £600 million of assets under management to the group in a perpetual capital structure, and in asset classes where we already have strength. This transaction represents further disciplined allocation of shareholder capital that is fully aligned to our strategy.’
Shares in abrdn were down 0.3% to 155.00 pence each in London on Tuesday morning.
On Monday last week, abrdn agreed to sell its £7.5 billion European-headquartered private equity business to Nasdaq-listed Latin America-focused alternative investment firm Patria Investments Ltd.
The sale is for an upfront consideration of £60 million. A secured deferred consideration of £20 million, plus interest, will be paid 24 months following completion of the sale, which is expected in the first half of 2024.
A further payment of up to £20 million will be paid subject to the performance of the business three years after completion, abrdn said.
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