Aberdeen Standard Investments has acquired Hark Capital from Enhanced Capital Group. No financial terms were disclosed. New York City-based Hark is a provider of loans to private equity and venture capital funds.
Aberdeen Standard Investments today announced that it has completed the acquisition of specialist financing company Hark Capital (“Hark”) from Enhanced Capital Group, LLC for an undisclosed sum.
Hark provides loans to mid-life and end of life private equity and venture capital funds. These loans are guaranteed at the fund level and provide financing for companies that would otherwise require equity. The loans are based on a fund’s net assets, not the credit profile of an individual portfolio company. This structure provides investors in Hark’s strategy with an opportunity to achieve attractive risk-adjusted returns, while offering the fund’s sponsor flexible access to financing for the portfolio. Since 2013, Hark has completed over 30 investments working with private equity and venture capital funds.
The team will become part of the Aberdeen Standard Investments Private Markets division which consists of over 100 investment professionals based around the world, managing £17 billion across private equity, infrastructure, real assets, strategic credit and private markets solutions. Current Hark CEO, Doug Cruikshank, will continue to lead the team along with Senior Investment Managers Rich Davis and Rafael Castro. The focus will remain on financing private equity and venture capital funds, with no change to the investment philosophy. The team will continue to manage the Hark I (2012; $106 million) and Hark II (2017; $203 million) funds and will be based in the New York office of Aberdeen Standard Investments.
Aberdeen Standard Investments’ Global Head of Private Markets, Peter McKellar, comments:
“We’re very pleased with the acquisition of Hark Capital as it represents a great milestone for expanding our Private Markets business into fund financing. There is increasing demand for this kind of product as private markets participants become more sophisticated and look for a combination of private credit and equity type solutions.”
“We have seen some strong fund raisings in the space and view Hark Capital as an exciting opportunity to gain a foothold in a growing market. The intention will be to build on Hark Capital’s successful presence in North America and leverage Aberdeen Standard Investments’ global platform to expand over time the reach of the offering.”
* Aberdeen Standard Investments has relationships with around 500 financial sponsors across approximately 1000 funds globally.
* Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
* With over 1,000 investment professionals we manage $684.6 billion* of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
* We are high-conviction; long-term investors who believe teamwork and collaboration are the key to delivering repeatable, strong investment performance. We are resolute in our commitment to active asset management.
* Aberdeen Standard Investments is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
* Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017. * For more information on Hark Capital please visit www.harkcap.com
*Standard Life Aberdeen AUM/AUA is $778.8 billion as of December 31, 2017.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments. In the United States, Aberdeen Standard Investments is the marketing name for the following affiliated, registered investment advisers: Aberdeen Asset Management Inc., Aberdeen Asset Managers Ltd., Aberdeen Asset Management Ltd., Aberdeen Asset Management Asia Ltd., Aberdeen Asset Capital Management, LLC, Standard Life Investments (Corporate Funds) Ltd., and Standard Life Investments (USA) Ltd