The U.K.’s biggest listed fund manager Schroders gobbles up a Swiss private equity pioneer, one that has been an important player on the Swiss market for more than two decades.
It is financial sector history in the making: Schroders is taking over the Swiss private equity specialist Adveq, as disclosed Thursday by the British fund manager.
Founded 20 years ago, Adveq is a low-profile elder of the Swiss private equity scene, along with companies like Zurmont, Capvis and the much larger Partners Group. Adveq’s fortuitous investment in Google is legendary in the business.
No Team Changes
Schroders didn't reveal the financial details of the transaction. Subject to the usual closing conditions, the acquisition is expected to be completed in the second half of 2017, a company statement said.
The takeover will involve no changes to the investment team or strategies that Adveq manages on behalf of clients, Schroder pledged.
Adveq manages assets of more than seven billion dollars, according to Schroders’ statement, with a mainly Swiss and German client base. The company is also active in the U.S. and in other international markets. Adveq employs some 110 people in eight subsidiaries worldwide – Zurich, Frankfurt, London, Jersey, New York, Shanghai, Beijing and Hong Kong.
Run on Private Equity
According to Adveq founder and chairman Bruno Raschle, the takeover provides access to new markets and will allow the Swiss firm to strengthen its performance and service. Schroders, one of Europe’s leading fund houses, speeds up the growth of its private assets business. In view of the exodus from actively managed funds, private market investments are a coveted lifeline for asset managers.
Private equity investments are enjoying a boom. According to the 2017 Global Private Equity Report, produced by consultancy firm Bain & Company, the private equity sector had more uninvested capital than ever before at 1.5 billion dollars at the end of last year.
