UK fund manager abrdn to sell private equity unit to Brazil’s Patria

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NEW YORK, Oct 16 (Reuters) – Abrdn (ABDN.L) said on Monday it had agreed to sell its $9 billion European-headquartered private equity business to Brazilian firm Patria Investments (PAX.O), as it seeks to boost returns by offloading non-core assets.

For Patria, the acquisition of abrdn’s fund of funds meets its goal of expanding more internationally after a listing on Nasdaq in 2021.

The British fund manager said Patria would pay 60 million pounds ($73 million) in cash upfront, with a further payment of 20 million pounds plus interest due two years after completion.

A final 20 million pounds would be paid after three years, subject to the performance of the business, abrdn said.

“We are continuing to reduce complexity and are focusing on areas where we are confident we can drive growth in the future,” abrdn CEO Stephen Bird said.

The sale is expected to complete in the first half of 2024.

In July, abrdn announced the sale of the U.S.-headquartered part of its private equity business to HighVista Strategies.

GLOBAL EXPANSION

Shares in Patria were up 1.3% following the deal’s announcement.

Patria’s Chief Executive Officer Alexandre Saigh told Reuters the acquired platform would expand the firm’s offerings for Latin American clients, who have been seeking to increase exposure to private equity outside the region. Abrdn offers investors funds of funds from different firms, mainly in Europe.

At the same time, Patria will be able to offer its Latin America funds to existing abrdn’s clients. Only 9-10% of Patria’s client base is from Europe.

Currently, the Brazilian firm mainly manages private equity, real estate, and credit assets in Latin America for investors outside the region. Still, it also offers third-party private market products to clients in the region interested in investing outside Latam, totaling $1.3 billion in assets.

As part of a newly launched Global Private Markets Solutions platform, Saigh said Patria is considering adding global funds of funds in real estate and credit in the future.

“This is a very interesting business. I want to provide my clients what they want, I don’t want them to go somewhere else,” said Saigh, adding Patria may consider further acquisitions in the U.S. and Asia in the future.

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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