Schroders reached an agreement to acquire Swiss-based Adveq Holding AG (Adveq) for an undisclosed amount, according to a company press release issued today.
As institutional investors seek more alternative investments to meet liabilities, Schroders may gain an advantage from Adveq’s specialized private equity solutions business, strong Swiss and German base, and positive record of year-on-year growth in assets under management since its launch 20 years ago. Adveq’s investment expertise lies in global small and medium-sized enterprise (SME) buyout, turnaround, and growth and venture opportunities. The acquisition is expected to be finalized in the second half of 2017.
Adding Adveq, which has more than $7 billion in client commitments, accelerates the growth of Schroders’ private assets business, and complements existing capabilities and expertise in the real estate and infrastructure finance sectors, according to the release. Schroders currently manages $17.91 billion in private assets, and is responsible for $510.2 billion (£397.1 billion) in client assets.
“Adveq’s impressive investment proposition, proven track record, and strong position within key markets makes this partnership a complementary combination,” Peter Harrison, Group Chief Executive of Schroders, said.
In recent years, Adveq has also successfully established a premium client base in the US and other international markets. There will be no changes to the investment team, process or strategies that Adveq manages on behalf of clients, according to the company.
“We are delighted with today’s announcement. Partnering with Schroders, a FTSE 100 global investment management business, provides Adveq with access to new markets and an enhanced proposition for our clients,” Bruno Raschle, founder and chairman of Adveq, said. “Schroders’ stable ownership structure and heritage, which is closely aligned with Adveq’s long-term investment philosophy, makes this an excellent fit.”
Adveq is a long-term partner for private equity investments, and its client base comprises institutional investors such as pension funds, insurance companies, endowments, family offices, and other financial institutions located in Europe, North America, and the Asia-Pacific region. With offices in Zurich, Frankfurt, London, Jersey, New York, Beijing, and Hong Kong, it invests in all private equity strategies, including venture capital, growth capital, buyout, and turnarounds through primaries, secondaries, and direct-/co-investments.