Mercer collects nearly $5bn for new alts fund

Mercer raised over $4.8 billion for its latest pan-alts investment fund, Mercer Private Investment Partners VI (PIP VI), with global interest from corporate pensions, public pensions, insurance companies and endowments and foundations.

PIP VI invests in multiple alternative strategies, including private equity, private debt, infrastructure, real estate and sustainable opportunities. Investment vehicles include co-investments, secondaries and other specialized offerings, officials said.

“In a lower expected return environment, asset owners and fiduciaries are likely to have a much tougher time achieving their financial objectives going forward unless they think differently about private market investments,” said Raelan Lambert, global head of alternatives at Mercer. “Investors are increasingly turning to private markets because they potentially offer enhanced return prospects compared to public markets.”

She also sees alternative investments helping investors support mission-based issues, such as DEI and sustainability.

The sixth vintage fund in the PIP series closed at the end of the fourth quarter 2021. By comparison to Mercer’s previous fund, PIP V, which raised $2.7 billion, the new offering adds credit dislocation opportunities as well as DEI-focused strategies to the program.

Mercer currently has roughly $26 billion in AUM and $164 billion in alternative assets under advisement and employs more than 240 alternatives professionals across 25 offices globally.

“PIP is supported by Mercer’s extensive and global reach in private markets,” Lambert added. “Our PIP solution pools client purchasing power to achieve better diversification, providing flexible access to compelling private markets investment opportunities in a cost-effective manner.”

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