Tekla Completion

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 £2.6bn¹ 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 £23.8bn² 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	[phone]
Institutional Equity Investors Sarah Moody Corbin Chaplin	[phone] [phone]

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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