Mercer buys Swiss alternatives adviser SCM
Mercer has announced a deal to acquire SCM Strategic Capital Management AG, the Swiss specialist private markets adviser.
Terms of the deal have not been released, but it is understood that the parties want it completed by the first quarter of 2015, subject to regulatory approval, and that the full SCM investment team would join Mercer.
“Mercer’s Investment business has achieved excellent revenue growth and SCM gives us an opportunity to build upon our outstanding global reputation,” said
Julio Portalatin, president and CEO of Mercer, said the deal represented an opportunity for his company to further build on its investment business.
“We are prepared to invest in areas where we see an opportunity to anticipate client needs and to strengthen our advisory and investment management capability.”
Phil de Cristo, president of Mercer Investments added that clients are seeking more advise in the area of alternative investments.
“In fast-moving and increasingly complex markets, a growing number of clients are turning to Mercer for advice in this area.”
As of the end of September, Mercer had some $108bn in AUM, including $13bn in alternative assets.
SCM, based in Zurich, has invested about $11bn in private markets funds since its founding in 1996. As of the end of March this year it reported a net asset value of $4bn in the portfolios on which it advises or manages.
Mercer is part of the Marsh & McLennan Companies group, which is listed on NYSE and last reported annual global revenues of £12bn. Other parts of the group include insurance brokers Marsh, risk services provider Guy Carpenter, and investment consultant Oliver Wyman.