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Aberdeen to complete FLAG acquisition in August

The merger of the two asset managers has accelerated by a month.

Aberdeen Asset Management expects to complete its acquisition of FLAG Capital Management at the end of August, a month ahead of schedule, it is understood.

The goal of the merger is to expand Aberdeen’s alternatives platform and upon completion the two businesses will be fully integrated. Aberdeen will hold about $21.3 billion of alternative assets under management including FLAG’s $6.3 billion of invested and committed capital, according to a statement in May announcing the transaction.

“FLAG’s well-established private equity teams in the U.S. and Asia will help broaden Aberdeen’s private markets solutions activity within the alternatives arena,” the statement said.

FLAG, which is based in the US with an office in Hong Kong following its acquisition of Squadron Capital Management in 2012, is currently marketing its sixth private equity fund, it is understood.

FLAG Private Equity VI will target $225 million and is being marketed globally. It follows FLAG’s 2012 vehicle of around the same size. 

The asset manager invests in lower middle market private equity funds, from growth to buyouts and turnarounds, that are typically less than $1 billion in size, according to its website.

FLAG is also in market with FLAG Squadron Asia IV, a $250 million fund of funds, FLAG Real Assets III focused on North America, and FLAG Venture Partners IX, both targeting $175 million.