LONDON, UK: abrdn has agreed to sell its £7.5bn AUM European-headquartered Private Equity business to Nasdaq-listed Patria Investments. The sale is expected to complete in the first half of 2024.

Upfront consideration comprises of £60 million of cash; secured deferred consideration of £20 million plus interest of cash to be paid 24 months following completion. Further payment of up to £20 million of cash to be paid subject to the performance of the business 3 years from completion.

This sale follows on from a strategic review of our Alternatives business, within which we concluded that the capital generated from the sale of certain of our private equity businesses would be better deployed within our core investment businesses. Evidence of this was demonstrated in our agreed acquisition of specialist healthcare investment adviser Tekla Capital Management in July.

Stephen Bird, CEO abrdn commented: “The sale of our European-headquartered Private Equity business to Patria Investments closely follows the completion of the sale of our US-headquartered Private Equity business to High Vista Strategies. This latest sale marks further progress in the reshaping of our Investments business in line with previous guidance. We are continuing to reduce complexity and are focusing on areas where we are confident we can drive growth in the future.”

Rothschild & Co served as financial advisor and Macfarlanes LLP served as legal advisor to abrdn. Latham & Watkins LLP served as legal advisor to Patria.

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