(Alliance News) - abrdn PLC on Monday announced that it has agreed to sell its GBP7.5 billion European-headquartered private equity business to Nasdaq-listed Latin America-focused alternative investment firm Patria Investments Ltd.

The sale is for an upfront consideration of GBP60 million. A secured deferred consideration of GBP20 million, plus interest, will be paid 24 months following completion of the sale, which is expected in the first half of 2024.

A further payment of up to GBP20 million will be paid subject to the performance of the business three years after completion, abrdn said.

"The sale of our European-headquartered Private Equity business to Patria Investments closely follows the completion of the sale of our US-headquartered Private Equity business to High Vista Strategies. This latest sale marks further progress in the reshaping of our Investments business in line with previous guidance," Chief Executive Stephen Bird commented.

abrdn Private Equity Opportunities Trust PLC on Monday noted the announcement by abrdn as the sale includes abrdn Capital Partners LLP, its investment manager and alternative investment fund manager.

arbdn Private Equity Opportunities Trust said it has received assurances from abrdn and Patria that its investment management team will remain unchanged should the sale proceed.

abrdn Private Equity Opportunities said abrdn has also confirmed that arrangements will be put in place to maintain the existing administration and other services currently provided by abrdn or third party service providers.

Shares in abrdn climbed 2.6% to 161.70 pence on Monday morning in London, while shares in abrdn Private Equity Opportunities remained flat at 427.50p.

Patria Investments closed down 1.1% at USD13.70 in New York on Friday.

By Heather Rydings, Alliance News senior economics reporter

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