Adveq agrees sale to Schroders

Schroders said the deal would accelerate the growth of its private assets business and complement existing capabilities and expertise in real estate and infrastructure. It is one of numerous asset managers looking to expand their alternatives footprint in response to increased demand from institutional investor clients that are looking for returns in a low interest rate environment.

Founded in Switzerland in 1997, Adveq’s fund-of-funds business started in the US with a technology program intended to back VC managers. One year later, the scope of the program was expanded, resulting in the firm’s first fund commitment to an Asia-focused GP.

Adveq currently has about $7 billion in total assets under management (AUM) globally across primary, secondary and co-investment strategies. It has offices in Zurich, Frankfurt, London, Jersey, New York, Beijing and Hong Kong, and employs approximately 100 professionals. The Beijing and Hong Kong offices opened in 2008 and 2012, respectively.

The firm has raised $600 million across three Asia-dedicated funds, the most recent closing at approximately $200 million in 2011. Although these funds haven’t grown significantly in size over the years, capital deployed in the region has risen, with contributions from global vehicles, including co-investment funds and separate accounts.

China accounts for 50-55% of the Asia allocation, with 35-40% going to India and the remaining 10% earmarked for other Asian countries. Approximately 30% of the region-wide total is invested in venture capital, predominately in China and India. The firm has 40 GP relationships in Asia, of which 20 are in China. Individual funds receive commitments of around $20 million.

“This acquisition is characterized by a strong cultural fit between our two firms – a shared client focus and commitment to delivering excellent investment performance. Adveq’s impressive investment proposition, proven track record and strong position within key markets makes this partnership a complementary combination,” said Peter Harrison, group CEO of Schroders, in a statement.

Schroders had GBP386 billion ($494 billion) in AUM as of year-end 2016 across equities, fixed income, multi-asset strategies, and emerging markets debt, commodities and real estate. The latter portfolio was worth GBP14.5 billion, of which 4% was in private equity. The firm has 41 offices in 27 countries.

The acquisition is expected to close in the second half of 2017. There will be no changes to Adveq’s investment team, processes and strategies.

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• Topics
• Fund-of-funds
• Europe
• Greater China
• LPs
• Asia
• M&A
• Adveq Management AG