A subsidiary of abrdn has entered into an agreement to acquire the healthcare fund management capabilities of Boston-based Tekla Capital Management.
The deal includes four New York Stock Exchange-listed healthcare and biotech thematic closed-end funds, totalling £2.6bn in assets under management, with £26m revenues in 2022.
As part of the deal, Tekla’s investment team will also be joining abrdn.
With a track record of more than 20 years investing in the healthcare sector, the move should allow abrdn to draw on their expertise as it looks to build out its offering in this area.
The transaction should also strengthen abrdn’s closed-end fund business, where it currently manages £24.2bn worth of assets in US and UK listed closed-end funds - making abrdn the third largest closed-end fund manager in the world.
Chief executive Stephen Bird said: “We have been clear that we will continue to invest in opportunities where we see capabilities that we need and that offer compelling value, and this acquisition strongly meets our criteria.
“Tekla is a leader in a field that offers compelling long term growth prospects, supported by demographic trends and the growing role of technology in healthcare.
“This deal represents another important step forward for our Investments business.”
The transaction lets abrdn establish a firm-wide centre of excellence for the healthcare and biotech sector within its developed markets business.
It also accelerates a strategic focus on specialist active management and thematic sectors underpinned by long term 'mega trends', especially advances in biotech.
This transaction builds on abrdn’s recent acquisition of five closed-end funds from Macquarie Asset Management, four of which were merged into three existing abrdn funds. The group will transition the management of the fifth fund, Delaware National Municipal Income Fund, on 7 July.
Bird added: “Listed closed-end funds have been an area of real strength for abrdn over many years.
“We have successfully executed more listed closed end fund acquisitions than any other investment manager over the last 15 years, and this deal further cements our leading position in this space.”
Pending approval by each Tekla fund’s board and shareholders - and the satisfaction of certain regulatory approvals and closing conditions - the deal is expected to close during the second half of this year.
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