Aberdeen Asset Management has said it will acquire 100% ownership of Advance Emerging Capital (AEC), a London based specialist investment manager with over $633m (£409m) across a range of investment funds.

The transaction is part of Aberdeen’s strategy to strengthen its alternatives capabilities to meet growing demand from investors that are looking to diversify their portfolios.

Martin Gilbert, CEO of Aberdeen Asset Management, said: “The acquisition of Advance Emerging Capital brings to Aberdeen a dedicated and highly experienced fund management team, expands further our closed end fund business and adds to the range of alternative investment capabilities we already offer.”

“AEC investors will benefit from the management team being part of a larger, independent asset manager and the ability to draw on the Group’s established distribution and operational expertise in regard to closed end funds,” he said.

AEC manages the Advance Frontier Markets Fund and the Advance Frontier Opportunities Fund, both of which invest into Africa and have a 32.9% and 26.8% allocation accordingly (as of July 31, 2015).

This step will provide the opportunity to expand the offering globally, across a wider range of additional strategies within the fund of closed end funds sector, when combined with the broader Aberdeen Alternatives capability.

The AEC team includes four investment professionals with over 50 years of combined investment experience.

They will be based in Aberdeen’s London office and will be part of the Group’s Alternatives business which is led by Andrew McCaffery.

The team will be independent of Aberdeen’s direct equity and fixed income teams.

Andrew Lister, Co-CIO of Advance Emerging Capital, said: “Aberdeen is an investment house we have immense respect for, and with which we share a similar investment philosophy and appreciation of the benefits of the closed end fund structure. Sitting within Aberdeen’s rapidly growing Alternatives business will, we believe, enable us to share ideas and best practice to the benefit of our existing investors.”

In line with Aberdeen’s fee policy, the AEC funds will not be double-charged on any Aberdeen funds held in the portfolios.

The AEC transaction is subject to regulatory approval from the UK Financial Conduct Authority and has the support of the Boards of Directors of Advance Frontier Markets Fund and Advance Developing Markets Fund, to which AEC currently acts as Investment Manager.

It is intended to complete the transaction during the fourth quarter of 2015.