Abrdn Diversified in talks to sell portfolio

The multi-asset trust, which is in the process of winding down, is in early-stage discussions with a buyer to offload its private assets portfolio.

Abrdn Diversified Income and Growth (ADIG ) is in early-stage talks to sell the remainder of its portfolio.

The multi-asset trust, which is in the process of winding down, said a potential buyer is currently doing due diligence on its portfolio of private assets.

‘The terms of any proposed transaction would need to be assessed against the likely return to shareholders that could be delivered through the other strategic options available to the company,’ the board explained.

‘This assessment would take into account, among other things, the quantum delivered to shareholders (on a net present value basis), timing and relative certainty of execution.’

So far, the trust has sold its listed investments and returned around £115m to shareholders in July of last year.

The board said it continues to explore options to sell its remaining private markets assets, which are divided into two groups by maturity date. The first tranche is expected to mature between 2025 and 2027, while the second tranche is set to mature between 2029 and 2033.

The board noted the secondary market for private assets had improved recently, but buyers remained selective and focused on the most attractive sectors.

‘The board believes there remain challenges in achieving secondary liquidity and attractive pricing for the company’s less liquid investments,’ it explained.

ADIG currently trades on a 35% discount to net asset value (NAV) and has a market cap of £134m. Over the past year, its shares are up 13.2% versus a 14.5% gain by the average trust in the AIC’s flexible investment sector.

Over three years, its shares are up 1% versus 4.2% by the sector average.