Aberdeen Asset Management announced Wednesday that it will buy FLAG Capital Management, an American manager of private equity and real asset solutions.

Aberdeen, based in Scotland, intends to use FLAG to grow its global alternatives platform in the United States.

“Institutional investors are increasingly looking towards alternative asset classes, including private market allocations, to diversify their portfolios and enhance returns,” Aberdeen CEO Martin Gilbert said in a statement. “This transaction is in line with Aberdeen's strategy of undertaking clear value-added acquisitions that will assist with accelerating business growth in this area.”

The company believes that FLAG’s presence across institutional and high-net-worth clients will increase Aberdeen’s exposure and footprint in the United States and Asia.

“Initially, it strengthens further our private market capability by bringing additional Asian expertise and new U.S. resource. This will also benefit our overall pan-alternatives platform,” Gilbert said. “Secondly, FLAG deepens and expands our U.S. client base, which is a key growth market for Aberdeen."

FLAG, a diversified private markets solutions business, has offices in Stamford, Conn., Boston and Hong Kong. As of December 31, FLAG managed assets of approximately $6.3 billion of invested and committed capital.

After the purchase is completed, Aberdeen will have over 50 investment professionals managing $15 billion of private equity, and its alternatives platform will have more than $21 billion in assets under management.

The terms of the deal were not released Wednesday. The transaction is expected to close in the third quarter of 2015, subject to regulatory approval.