The Investments business of consulting firm Mercer has acquired SCM Strategic Capital Management, a Swiss-based specialist private markets advisor and delegated solutions provider. The acquisition will further strengthen Mercer’s capabilities in alternative investments. Terms of the transaction have not been disclosed.
In line with its ambition to boost its alternative investments business*, an area of growing importance in the global institutional marketplace, Mercer Investments has decided to acquire SCM Strategic Capital Management. The deal will strengthen Mercer’s advisory and investment management capabilities, along all the stages of the investment lifecycle, including decision analysis, risk management, and investment monitoring. “Increasingly our investment clients are seeking advice regarding alternatives investment strategy, either through a custom portfolio or a delegated solution, and SCM is an excellent addition to Mercer’s already well-regarded alternatives capabilities,” says Phil de Cristo, President of Mercer Investments.
As part of the transaction, the entire SCM investment team will join Mercer in Switzerland. The new joint unit will be led by Stefan Hepp, founder of SCM and going forward Global Business Leader Private Markets at Mercer, and Ralph Aerni, CIO of SCM, becoming Global Co-CIO Private Markets at Mercer, alongside Mike Forestner, who is currently Director of Private Markets at Mercer.
“By maintaining SCM’s platform in Switzerland and its seasoned investment team, we will continue to partner with our clients to deliver superior returns and the high level of service that are hallmarks of our reputation,” comments Hepp. “The combination of SCM and Mercer will result in a truly global platform with a substantial increase in manager research and investment management capabilities and will allow us to integrate ESG ratings in the due diligence process. Both Mercer and SCM have similar values and share a commitment to excellence and to delivering superior insights and solutions in the alternatives market.”
The transaction is expected to close in the first quarter of 2015, subject to regulatory approvals.
* Mercer Investments currently has more than $108 billion in assets under management, including $13 billion in alternative assets under management.