Schroders Acquires Adveq

No changes expected to the investment team, process or strategies that Adveq manages on behalf of clients.

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.

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“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.

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Minnesota Foundations Collectively Drive Impact at Home

Kick off collaborative efforts towards impact by committing more than $17.1 million to a fixed-income bond fund.

Minnesota foundations are joining forces and putting investment dollars to work to help their neighbors. The Minnesota Council on Foundations (MCF), which includes members such as the McKnight Foundation, Bush Foundation and Otto Bremer Trust, has announced a collaborative effort toward impact investing targeting affordable housing and small business lending throughout Minnesota.

“For several decades, many of our Minnesota foundations have been doing impact investing on their own, long before the term was even coined,” Susan Hammel, MCF’s impact investing executive in residence told CIO Magazine.  “In 2014, we convened them for the first time and they realized there was a lot to gain from working together and learning from each other. Collaborating is part of our Minnesota DNA, especially in philanthropy…As impact investing has taken off and gone increasingly mainstream, our foundations wanted to take the informal connecting and information sharing to the next level.”

The foundations kicked off their collaborative efforts towards impact by committing more than $17.1 million to a fixed-income bond fund, which is expected to exceed $20 million. The bond fund, Access Capital Community Investment Fund, is managed by RBC Global Asset Management. “This money strengthens Minnesota’s market for affordable housing and small business securities, and grows the number of Minnesota-based foundations involved in impact investing,” Hammel, stated in a release. “The fund will have impact locally, but because it reaps nationally diversified returns, it will not have overly localized risk.”

RBC was selected from four firms through a competitive bid process that involved data collection, analysis, manager interviews, and assessment, according to Hammel. “RBC has a long-time commitment to this region and knows the market well,” she said.

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The investment fund has a track record of investing in US agency-guaranteed, mortgage-backed securities and government-backed loans that support affordable rental housing, small businesses, healthcare, education, and job creation. The strategy had more than $1 billion in assets under management as of the end of last year.

Hammel anticipates that the commitment will lead to other impact opportunities. “We are hoping this is the first of many and are exploring other opportunities such as a low-interest-rate loan pool for CDFI’s (Community Development Financial Institutions Funds), social businesses and nonprofits, and perhaps a private equity fund,” she said.

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