Mercer has announced it is buying Cardano, which owns the UK’s third largest master trust in terms of members, Now Pensions.
Mercer, which is part of the Marsh McLennan group, also operates its own DC master trust, although it has not given details as to whether the two will be merged.
Cardano was established in 2000 and specialises in long-term savings in the UK and the Netherlands, managing around $66 billion (£51.7 billion) in assets. It caters to over two million savers and 27,000 employers through Now Pensions.
As part of the agreement around 550 Cardano employees in London, Nottingham and Rotterdam will join Mercer. The transaction details, anticipated to be finalised by late 2024 pending regulatory clearance, remain undisclosed.
Mercer wealth president Michael Dempsey says: “We are excited about the opportunity to welcome Cardano to our Wealth business, which brings with it a high-quality team and complementary range of specialist investment capabilities. The acquisition and alignment of our expertise and capabilities represents a timely combination to support pension clients and other institutional investors and their evolving needs.”
He said this will help position Mercer as the pension provider of choice in both the UK and the Netherlands.
“This will allow us to continue to expand globally beyond pensions to serve other large asset owners, including endowments and foundations, family offices and insurers,” said Benoit Hudon, Mercer’s UK President and CEO.
Cardano Group CEO Michaël De Lathauwer says: “Mercer is the ideal long-term home for our business and clients. We share an aligned culture, focused on delivering excellent outcomes for clients, and together, we are committed to being the best solutions provider for UK and Dutch pension schemes.