Mercer announced today that, subject to regulatory approvals, it has entered into a definitive agreement to acquire SCM Strategic Capital Management AG (SCM), a Swiss-based specialist private markets advisor and delegated solutions provider. The acquisition will further strengthen Mercer’s capabilities in alternative investments, an area of growing importance in the global institutional marketplace.
“Mercer’s Investment business has achieved excellent revenue growth and SCM gives us an opportunity to build upon our outstanding global reputation,” said Julio A. Portalatin, President and Chief Executive Officer of Mercer. “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. We are delighted to welcome the SCM team to Mercer and look forward to working with them.”
“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,” said Phil de Cristo, President, Mercer Investments. “In fast-moving and increasingly complex markets, a growing number of clients are turning to Mercer for advice in this area.”
“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,” said Dr. Stefan Hepp, founder and CEO of SCM. “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 conditions as set forth in the purchase agreement and regulatory approvals. The intention is that, subject to these approvals, the entire SCM investment team will be joining Mercer, with Dr. Hepp becoming 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. It is also intended that both Dr. Hepp and Mr. Aerni will join the Alternatives Investment Committee of Mercer. Terms of the transaction were not disclosed.
At 30 September 2014, Mercer had $108 billion in assets under management, including $13 billion in alternative assets under management.
Notes to Editors
SCM Strategic Capital Management AG is an independent, specialized Swiss investment advisor for institutional investors. The firm focuses on investments in Private Equity, Real Estate and infrastructure. SCM offers customized advisory solutions, mandates and funds-of-funds in the relevant investment segments. Since its founding in 1996, SCM has become one of the most important financial investors for private market fund investments. SCM services range from full service mandates to the use of single modules that support single client solutions. Based in Zurich, SCM has offices in Luxembourg, Hong Kong, and a representative in Seoul. Based in Zurich, Switzerland, SCM has since its founding in 1996 invested approximately $11 billion in private markets funds. SCM advises on or manages portfolios with an NAV of $4 billion as of March 31, 2014.
Mercer is a global leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 42 countries and the firm operates in more than 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. With over 55,000 employees worldwide and annual revenue exceeding $12 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerInsights. In the UK, Mercer Limited is authorized and regulated by the Financial Conduct Authority.