The London-listed asset management firm is enhancing its focus on the alternative investments space through its latest acquisition.

The UK's Aberdeen Asset Management has completed its acquisition of Flag Capital Management, a US-based private equity and real estate-focused firm.

The acquisition, details of which were not disclosed, comes as part of Aberdeen’s strategy to grow its alternatives business via multi-manager hedge funds, property and private market allocations, direct infrastructure investments and pan-alternative capabilities.

Flag, which has offices in Stamford, CT, Boston, MA, and Hong Kong, focuses on venture capital, small to mid-cap private equity, as well as real assets in the US and private equity in Asia. It has over $7 billion in discretionary assets.

The purchase follows on swiftly from Aberdeen's announcement last month it is to acquire Arden Asset Management, a hedge fund specialist with offices in New York and London. Following the completion of this acquisition, expected to be towards the end of the year, Aberdeen’s alternatives division will have $30 billion of assets under management. The firm recently launched a $500 million fund offering investors exposure to a portfolio of alternative strategies.

“The acquisition of FLAG is very important for our alternatives business. Alternatives are becoming increasingly popular with investors who are seeking diversification. But to be a credible provider you have to be able to compare markets and sectors globally and then drill down and understand what’s happening on the ground. This deal will help us meet that aim. We are now one of a handful of private equity investors with genuine local expertise in the US, Europe and Asia,” said Aberdeen Asset Management's global head of alternatives, Andrew McCaffery.