Mercer reached an agreement to buy Vanguard’s U.S. Outsourced Chief Investment Officer (OCIO) business that is focused on not-for-profit organizations and other institutional investors.
As part of the agreement, Vanguard’s roughly 120-person OCIO team are expected to transfer to Mercer as full-time employees, upon completion of the transaction, which is expected to be in the first quarter of 2024. Mercer’s assets under management as of Sept. 30 were $379 billion. Vanguard’s assets were not disclosed.
Earlier this year, Mercer appointed Jennifer Kruse as OCIO leader, charging her with overseeing Mercer’s OCIO business and team in the U.S. and implementing strategic initiatives, driving business development and managing and expanding client relationships. Mercer has been providing OCIO services since 2005.
“Vanguard’s differentiated investment philosophy, strength in the not-for-profit sector, and client-centric approach complements our global capabilities across OCIO and managing alternative asset classes,” said Marc Cordover, U.S. Investments and Retirement leader at Mercer.
John James, managing director of Vanguard’s Institutional Investor Group, added, “We are confident our OCIO clients will continue to enjoy high-quality investment solutions, ably stewarded by the mission-driven professionals who will continue to serve them. With Mercer’s expertise, capabilities, and commitment to driving optimal client outcomes, we believe it is well positioned to help our OCIO clients navigate the evolving OCIO landscape.”