Aberdeen Asset Management’s agreement to buy SVG Capital’s stake in the private equity joint venture that the firms set up brings it a step closer to becoming a powerful force in the sector, as it consolidates its alternatives platform after the acquisition of Scottish Widows Investment Partnership last year.

The FTSE 100 asset manager, which has more than £320 billion of funds under management, said on Friday that it will buy the UK-listed fund of funds manager's 49.9% stake in the joint venture, known as Aberdeen SVG Private Equity, for £29 million.