Schroders and BlueOrchard have entered into an agreement under which Schroders will acquire a majority stake in Swiss-based impact investment manager for an undisclosed sum.
The move is expected to "further accelerate" growth in private assets and impact investing in emerging markets as the deal comes at a time that return-seeking investors are increasingly showing interest in investments that have a positive impact on society and the environment.
Zurich-based BlueOrchard, founded in 2001, puts money into projects that pay returns based on hitting non-financial targets, often linked to social development or the environment. The deal gives the British company access to BlueOrchard's about $3.5bn assets under management as of May 30.
Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard’s expertise in this area is exceptional"
Major Dutch pension funds ABP and PGGM previously had investments in funds managed by BlueOrchard, but they had to pull out due to regulatory changes in the Netherlands.
"Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard's expertise in this area is exceptional," Peter Harrison, chief executive of Schroders said.
Patrick Scheurle, CEO of BlueOrchard, said Schroders' "stable ownership structure and heritage makes them an excellent partner".
There will be no changes to the management team, processes or strategies that BlueOrchard manages. Peter A. Fanconi will remain as chairman of the Board of Directors and Patrick Scheurle as CEO of BlueOrchard.
Schroders will appoint Peter Harrison (group chief executive), Georg Wunderlin (global head of Private Assets), and Stephen Mills (executive chairman of Schroder Adveq) to the board. BlueOrchard's board of Directors, consisting of both BlueOrchard's and Schroders' representatives will adopt joint strategic decisions.
The acquisition is expected to complete by the end of the year subject to usual closing conditions.