Aberdeen to raise first global PE fund of funds

The asset management firm is targeting up to $500m.

Aberdeen Asset Management is looking to raise up to $500 million for its first global private equity fund of funds, a spokesman has confirmed. “It is something we are looking to do later in the year,” he said.

The global fund would run alongside the firm's existing regionally-focused funds. It latest, FLAG Private Equity VI, since renamed Aberdeen US Private Equity VI, closed on $295 million in October last year, well above its $225 million target, as reported by Private Equity International .

The fund is focused on North America and closed shortly after Aberdeen's acquisition of US-based alternative asset manager FLAG Capital Management.

Aberdeen invests in mid- and lower mid-market private equity funds across private equity strategies, including growth, buyout and turnarounds, according to its website. The firm invests in “operationally-oriented managers with particular sector expertise or specialty, but will also consider leading generalist funds”, it said. It prefers country or region-specific managers.

Its existing funds of funds currently investing, include FLAG Private Equity V, a $217 million, 2012-vintage vehicle, FLAG Asia Partners III, a $35 million 2012-vintage vehicle, and FLAG International Partners III, a $47 million 2012-vintage fund, according to PEI Research & Analytics.

Aberdeen's total group assets stood at $429.7 billion at the end of September 2015, of which $34 billion was in alternatives and $16.1 billion in private equity and venture capital, as reported by PEI. It is currently marketing Aberdeen Global Venture Capital X and Aberdeen Natural Resources Fund IV.

To read PEI's Privately Speaking interview with Aberdeen's global head of alternatives Andrew McCaffery in our March issue click HERE .