Schroders has bought River and Mercantile’s fiduciary management and derivatives business.
The transaction is valued at about £230m. Schroders said this purchase of R&M’s UK Solutions Division will strengthen Schroders own fiduciary management business.
James Barham, CEO of River and Mercantile Group will join Schroders to continue to lead the solutions division. He will report to Schroders group chief executive Peter Harrison. The deal is expected to complete in the first quarter of 2022.
The acquired division will retain its approach to strategic advice, investment process, integrated implementation and service model. In an open architecture framework, clients will have access to Schroders investment capabilities, including private assets and leverage Schroders extensive sustainability expertise.
Schroders said this enhanced capability gives it the reach and resources to help both DB and DC schemes of various sizes as they evolve, and to address the challenge of delivering value and sustainable outcomes to members.
Harrison said: “This acquisition further enhances our ability to meet the increasingly complex needs of pension fund clients and is consistent with our growth strategy. The business brings with it a well-respected team, with a strong track record of success and is a good cultural fit with Schroders. We see significant opportunities from this partnership.”
