Aberdeen Asset Management is set to acquire Advanced Emerging Capital (AEC), a London-based emerging and frontier market fund-of-funds business.

The £307bn (€418bn) asset manager will add AEC into its alternatives business.

The news follows recent acquisitions boosting Aberdeen’s hedge fund capabilities in the US and private equity.

The AEC deal is set to be completed by the end of 2015, subject to regulatory approval.

It will also require the approval of listed firms Advanced Developing Markets Funds and Advance Frontier Markets Fund, to which AEC is an investment manager.

The £409m manager was started by 1996 and primarily focuses on allocating to investment managers and funds in emerging and frontier markets.

It adds four investment professionals to Aberdeen’s business.

AEC operates both open and closed funds and will add £8.5bn to Aberdeen’s closed fund business, the company said.

Martin Gilbert, chief executive at Aberdeen, said AEC added to the range of alternatives offered by the company.

“AEC investors will benefit from the management team’s 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.

Aberdeen recently purchased Flag Capital Management, a private equity manager, in addition to completing the full purchase of its private equity joint venture with SVG Capital.

It has also entered an agreement to buy Arden Asset Management, a US hedge fund manager, which it said would expand its distribution in the region and build its hedge fund and alternatives capabilities.