Less than a month on from Aberdeen’s purchase of fund-of-funds manager FLAG Capital Management, the parent firm has opted to soft-close the FLAG Private Equity VI fund.
The decision comes as total investment in the fund hit $295m (£194m), $70m (£46m) above the initial target and representing the second above-target private equity fund closure to be implemented by the FLAG team.
Following the closure, FLAG Private Equity VI will embark on constructing a portfolio primarily comprising lower-middle bracket US private equity vehicles – a space which Aberdeen believes is inefficient – while 20% will be invested in direct equities.
Andrew McCaffery, Aberdeen’s global head of alternatives, cited increasing investor demand for alternative strategies in the current market environment as behind the fund’s apparent popularity.
“The successful closing of FLAG Private Equity VI is a reflection of continued investor interest to allocate to private equity,” he said.
“It is also a great milestone for Aberdeen’s expanded presence in private market solutions, and more broadly in alternatives, and we appreciate the support of our limited partners.”
