Exclusive: Aberdeen Standard Investments to Launch China Asset Management Venture with CITIC Unit, Sources Say
Aberdeen Standard Investments, one of the world’s largest asset managers, is set to enter the Chinese market by partnering with a unit of CITIC, a leading Chinese conglomerate, to launch a new alternative investment management entity, sources familiar with the matter told Reuters.
The new venture, which is expected to be based in Shanghai, aims to tap into the growing demand for alternative investment products in China, particularly from high-net-worth individuals, family offices, and institutional investors.
According to sources, the new company will be a joint venture between Aberdeen Standard Investments and CITIC (Hong Kong) International Investment Company Limited (CHIIC), a subsidiary of CITIC Group Corporation, a Chinese conglomerate with diverse interests in industries such as finance, energy, transportation, and real estate.
The joint venture, which is yet to be officially announced, is expected to start operations later this year, subject to regulatory approvals. The new company will focus on providing alternative investment products, including private equity, real estate, and infrastructure investments, particularly in China.
Aberdeen Standard Investments, which has around $550 billion in assets under management, sees China as a key market for growth, given the country’s rapid economic expansion and increasing wealth pool. The partnership with CITIC will enable the asset manager to leverage its expertise and network in the region, while tapping into CITIC’s local know-how and connections.
The partnership is part of a broader strategy by Aberdeen Standard Investments to expand its presence in Asia, following significant investments in the region in recent years. The company has already set up ventures in countries such as Japan, South Korea, and Taiwan, with plans to further expand its operations in the region.
CITIC Group, meanwhile, has been actively expanding its investment management arm, CITIC International Investment Company (CII), which focuses on private equity, venture capital, and alternative investments.
The joint venture will be led by a team of experienced professionals with deep knowledge of the Chinese market and investment industries, sources said. The new company is expected to create new job opportunities in the region, driven by a strong demand for alternative investment products from local investors.
While the exact structure and investor positioning of the joint venture are still being finalized, sources said that it is expected to have a significant foothold in the Chinese market, serving a diverse range of clients, from high-net-worth individuals and family offices to institutional investors.
The partnership between Aberdeen Standard Investments and CITIC underscores the growing importance of China as a key market for global asset managers, as the country continues to attract significant foreign investment and wealth creation.
In a statement, Aberdeen Standard Investments said: "We are committed to providing our clients with diversified investment opportunities across various asset classes and geographies. This partnership with CITIC is an exciting development that highlights our commitment to Asia and our ambition to be a leading global investment manager."
A CITIC Group spokesperson declined to comment on the matter.
