Finance
UK's Aberdeen to acquire $2 billion of US closed-end assets
Published by Global Banking and Finance Review
Posted on December 12, 2025
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 12, 2025
LONDON, Dec 12 (Reuters) - British money manager Aberdeen said on Friday it would acquire the management of nine U.S.-based closed-end funds with assets totalling 1.5 billion pounds ($2 billion), part of an ongoing drive to expand in the U.S. market.
Aberdeen will buy the funds from Boston-based investment manager MFS and merge them into two larger funds together with one existing Aberdeen fund, which will then invest in areas including bonds and the hot private credit market.
The deal marks Aberdeen's tenth acquisition of U.S. closed-end funds since 2000, and the firm said it was well-placed to further consolidate the sector to build bigger funds that deliver greater economies of scale.
The company's shares were up 0.7% after the announcement. Aberdeen CEO Jason Windsor said in a statement that the company would continue to invest in areas where it saw significant room for growth.
No staff will transfer as part of the deal and no acquisition value was stated.
($1 = 0.7467 pounds)
(Reporting by Iain Withers in London and Yamini Kalia in Bengaluru. Editing by Rashmi Aich and Mark Potter)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
Closed-end funds are investment funds that raise a fixed amount of capital through an initial public offering and then trade on a stock exchange.
Asset management is the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.
Private credit refers to non-bank lending to companies, typically involving private equity firms or other private investors.
Economies of scale refer to the cost advantages that a business obtains due to the scale of operation, with cost per unit of output generally decreasing with increasing scale.
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