Mercer will acquire Swiss private markets manager and consultant SCM Strategic Capital Management, strengthening its alternative investment capabilities.
The deal is subject to approval by regulators in Switzerland and Luxembourg, where SCM is an authorized manager and consultant of alternative investment funds, a Mercer spokesman said. He said approvals or notifications are also required in a small number of other jurisdictions where SCM has representative offices.
The deal is expected to close in the first quarter of 2015. Terms of the transaction were not disclosed.
SCM's team of 22 will join Mercer, the spokesman said. Stefan Hepp, founder and CEO of SCM, will become global business leader-private markets, at Mercer. The position is new.
Ralph Aerni, chief investment officer of SCM, will take on the newly created position of global co-chief investment officer-private markets, at Mercer. He will work alongside Mike Forestner, currently director of private markets at Mercer. Messrs. Hepp and Aerni will also join the alternatives investment committee of Mercer.
Mercer will maintain SCM's operations in Switzerland, as well as the investment team.
“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,” said Julio A. Portalatin, president and CEO at Mercer, in a news release.
Mercer has $108 billion of assets under management, including $13 billion in alternatives. Mercer's assets under advisement could not be learned by press time. SCM has $4 billion of assets under advisement and management.