The Consulting Fund Manager: Mercer AUM Hits $115B

A busy year for the consultant-turned-investor saw its global assets grow by 33%.

Mercer’s assets under management swelled by a third during 2014 to $115 billion, led by a 39% increase in US assets. 

The consultant continued its deliberate move into the asset management space, which began in 2012, buying Switzerland-based Strategic Capital Management in November. This brought on board $4 billion of private equity, real estate, and infrastructure assets. 

Michael Dempsey, European head of Mercer’s “delegated solutions” business, said the alternatives space was a particularly important area for the company as more large investors sought segregated mandates for infrastructure or unlisted assets.

Last year saw the consultant team up with insurer Zurich in the summer to offer a longevity risk service to smaller defined benefit pension clients in the UK.

Most recently, earlier this month, Mercer revamped its US-based hedge fund unit, promoting Dave McMillan, formerly director of hedge funds, to CIO of the business. Stephen Ewen was named as his deputy.

US assets make up 40% of the total under management, at $46.6 billion, while in Europe Mercer runs $41.5 billion. The group has $21 billion under management in Asia.