Schroders to return to private equity with Adveq purchase
Schroders, the London-based, LSE-listed asset management company, said it had agreed to acquire Adveq Holding, a Zurich-based private equity firm , as it “accelerates the growth” of its private assets business.
The deal, which is subject to regulatory approvals and expected to close in the second half of 2017, will mark a return of sorts by Schroders to the private equity sector, which it left in 2001. That was the year that an in-house private equity entity known as Schroders Ventures, founded in 1983, was spun off, and its European division – at that point renamed Permira – went on to become one of the private equity industry’s leading players.
(The US arm of Schroders Ventures continues as Greenwich, Connecticut-based SV Investment Partners.)
Terms of the Adveq deal weren’t disclosed.
In a statement, Schroders said the acquisition would complement its existing capabilities and expertise in the real estate and infrastructure finance sectors.
No changes to Adveq’s investment team, process or strategies that it manages on behalf of its clients are planned, the statement added.
Founded in 1997 by Bruno Raschle, who remains the firm’s chairman, Adveq has offices in Zurich, Frankfurt, London, Jersey, New York, Beijing, and Hong Kong, and looks after more than US$7bn (€6.8bn) in assets under management on behalf of clients, who, it said, are mainly Swiss and German.
According to Schroders, Adveq takes a global approach to investment, which it carries out through all the traditional private equity strategies, including venture capital, growth capital, buyout, and turnarounds, through primaries, secondaries, and direct-/co-investments.
Private equity is seen by some investment specialists as an increasingly viable way of diversifying portfolios.