Mercer, a global leader in reshaping retirement and investment outcomes and a business of Marsh McLennan, announced that it reached an agreement to acquire Vanguard’s outsourced chief investment officer (OCIO) business that provides investment management services for not-for-profit organizations and other institutional investors in the United States.

Commenting on the acquisition, Marc Cordover, US Investments and Retirement Leader, Mercer, said: “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.”

Mr. Cordover continued, “We know institutional investors, and not-for-profit organizations specifically, continue to face a range of challenges. They require robust solutions and global expertise to stay ahead of the curve. We are excited to welcome to Mercer the talented investment professionals already supporting this business. Together, we will help clients unlock new and emerging investment opportunities, navigate risk, and pursue compelling returns.”

John James, Managing Director of Vanguard’s Institutional Investor Group, said, “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.”

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.

Source: Mercer