Tekla Capital Management LLC Announces Proposed Transaction

Tekla Capital Management LLC (Tekla) announced today that it has entered into an agreement with abrdn Inc. for a strategic transaction involving four NYSE-listed healthcare & biotech thematic closed-end funds (the Funds), totaling $3.1 bn in assets under management.¹

Under the proposed transaction, the Tekla investment team responsible for the management of the Funds will join abrdn to form abrdn’s healthcare and life sciences investment team and abrdn will become the investment adviser to the Funds. Following the proposed transaction, the Funds will continue to be managed in accordance with their existing investment objectives and strategies, by the same team of Boston-based investment professionals pursuing the same investment philosophy and employing the same investment process that has served the Funds well through the years. The Funds and their shareholders will benefit from abrdn’s expertise as a global investment firm with 2,344 investment professionals and anticipated expense savings as a result of abrdn’s scale and resources. abrdn is a leader in closed-end funds, with $29.8 billion in US and UK listed closed-end funds under management.²

The Funds are:

• Tekla Healthcare Investors (HQH)
• Tekla Life Sciences Investors (HQL)
• Tekla Healthcare Opportunities Fund (THQ)
• Tekla World Healthcare Fund (THW)

Each Fund is a non-diversified closed-end management investment company sponsored and managed by Tekla. Each Fund’s shares are listed on the New York Stock Exchange.

The proposed transaction is subject to the approval of new investment management contracts between abrdn and each Fund by the boards of trustees of each Fund and by the shareholders of each Fund at a special meeting of shareholders anticipated to be held on August 14, 2023. A proxy statement containing information about the meeting and the proposal to approve new investment management contracts will be mailed to the Funds’ shareholders of record as of June 16, 2023. Additional information regarding the proposed transaction and proposed new investment management contracts with abrdn will be contained in the proxy statement.

The transaction is currently expected to be completed in the third quarter of 2023, subject to required fund board and shareholder approvals and the satisfaction of applicable regulatory requirements and customary closing conditions.

About Tekla

Tekla is an asset manager primarily focused on healthcare investing. Since its inception, Tekla has maintained a singular focus on the asset class. Its expertise comes from a diverse team of individuals, many with advanced degrees in science and business, investing experience and industry experience that help drive investment decisions. For more information, please visit www.teklacap.com.

About abrdn

abrdn is a global investment company that helps clients and customers plan, save and invest for the future. abrdn’s purpose is to enable its clients to be better investors. abrdn manages and administers £500bn of assets for clients (as at 31 December 2022). abrdn is structured around three businesses – Investments, Adviser and Personal – focused on their changing needs. The capabilities in abrdn’s Investments business are built on the strength of its insight – generated from wide-ranging research, worldwide investment expertise and local market knowledge. abrdn’s teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs. As at 31 December 2022, abrdn’s Investments business manages £376bn on behalf of clients - including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices. For more information, please visit www.abrdn.com.

Additional Information about the Funds and the transaction

This press release is not intended to, and does not, solicit any proxy from any shareholder of the Funds. The solicitation of proxies to effect the transaction described herein will only be made by a definitive proxy statement.

The Funds and their trustees and officers, Tekla and its officers and employees, and other persons may be deemed to be participants in the solicitation of proxies with respect to the approval of new investment management contracts described herein. Fund shareholders may obtain more detailed information regarding the direct and indirect interests of a Fund’s trustees and officers, Tekla and its officers and employees, and other persons by reading the proxy statement relating to the transaction when it is filed with the Securities and Exchange Commission. Fund shareholders should read the proxy statement when it is available because it contains important information. The proxy statement will be available for free at the Securities and Exchange Commission’s website (www.sec.gov).

Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors that are, in some cases, beyond a Fund’s control and could cause actual results to differ materially from those set forth in the forward-looking statements.

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¹ As of June 16, 2023

² As of 24 January 2023

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