REG - abrdn PLC - Tekla Completion

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30/10/2023 07:15

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RNS Number : 5966R  abrdn PLC  30 October 2023

 

30 October 2023

 

abrdn plc

 

abrdn completes acquisition of US specialist healthcare closed-end funds

Following the announcement of the proposed acquisition in June, abrdn plc
today confirms the completion of the acquisition of the healthcare fund
management capabilities of Tekla Capital Management LLC (Tekla) by its U.S.
subsidiary abrdn Inc. Tekla is a global specialist healthcare investment
adviser based in Boston, Massachusetts.

The deal includes four NYSE listed healthcare and biotech thematic closed-end
funds, totalling £2.6bn(1) in assets under management (AUM), with £26m
revenues in 2022.

As part of the deal, Tekla's investment team will also be joining abrdn. With
an impressive track record of over 20 years investing in the healthcare
sector, the move will allow abrdn to draw on their expertise as it looks to
build out its offering in this area.

The transaction will also further strengthen abrdn's closed-end fund business,
where it currently manages £23.8bn(2) in AUM in US and UK listed closed-end
funds, making abrdn the third largest closed-end fund manager in the world.

Stephen Bird, abrdn CEO, said:

"The Tekla team has an impressive 20-year track record investing in healthcare
and biotech companies. They have built a highly-profitable business, which
delivers great returns for investors. As the world adapts to an environment
where we are all living longer, there is a huge demand for capital in these
sectors - matched with a demand from investors to support a clear global
megatrend. We look forward to what the team can do now that they are part of
the abrdn platform."

 

The transaction provides key benefits to abrdn:

·    Enables abrdn to establish a firm-wide centre of excellence for the
healthcare and biotech sector within its developed markets business.

·    Accelerates abrdn's strategic focus on specialist active management
and thematic sectors underpinned by long term megatrends, especially the
landscape for advances in biotech which is well positioned for expansion and
growth.

·    Integrates the investment expertise of the Tekla team, which has deep
knowledge and specialisation that can generate insights across the business
and drive growth through the development of thematic products in healthcare
and biotech.

·    Offers a unique platform to deliver solutions and opportunities for
clients.

(1) As of 31 December 2022

(2) Morningstar data as of 17 July 2023

 

Enquiries:

  Media

 Andrea Ward                     +44 (0) 7876 178 696
 Institutional Equity Investors

 Sarah Moody                     +44 (0) 7774 332 428

 Corbin Chaplin                  +44 (0) 7774 332 428

LEI: OTMBS544NMO7GLCE7H90

 

Notes to editors

Healthcare as an asset class in in the US:

·    US healthcare expenditure per capita has grown at a compound annual
rate of 6% since the 1980s.

·    Aging populations combined with increased instances of obesity,
diabetes and cancer are expected to further drive demand in the healthcare
sector.

·    Over the long term, healthcare consistently outperformed broad debt
and equity indices.

·    All subsectors of healthcare have benefitted from recent research and
innovation, with demographic change accelerating technological advancement in
the space.

Source: Centers for Medicare & Medicaid Services, Office of the Actuary,
National Health Statistics Group; U.S. Department of Commerce, Bureau of
Economic Analysis; and U.S. Bureau of the Census, Morningstar.

The names of the four NYSE listed funds are;

·    Tekla Healthcare Investors (HQH)

·    Tekla Life Sciences Investors (HQL)

·    Tekla Healthcare Opportunities Fund (THQ)

·    Tekla World Healthcare Fund (THW)

About abrdn

·    abrdn is a global investment company that helps clients and customers
plan, save and invest for the future. Our purpose is to enable our clients to
be better investors.

·    abrdn manages and administers £496bn of assets for clients (as at 30
June 2023).

·    Our strategy is to deliver client-led growth. We are structured
around three businesses - Investments, Adviser and Personal - focused on their
changing needs.

·    The capabilities in our Investments business are built on the
strength of our insight - generated from wide-ranging research, worldwide
investment expertise and local market knowledge.

·    Our teams collaborate across regions, asset classes and specialisms,
connecting diverse perspectives and working with clients to identify
investment opportunities that suit their needs.

·    As at 30 June, our Investments business manages £368bn on behalf of
clients - including insurance companies, sovereign wealth funds, independent
wealth managers, pension funds, platforms, banks and family offices.

 

 

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