Mercer Investment Consulting said Monday that it has completed its buy of Hammond Associates effective Jan. 3. Financial terms were not disclosed. Hammond, of St. Louis, is an investment consulting firm that serves endowments and foundations. Mercer, a unit of Marsh & McLennan Cos., provides consulting, outsourcing and investment services.
Mercer Investment Consulting, Inc. (Mercer) announced that it completed its acquisition of Hammond Associates, effective January 3, 2011. The acquisition creates a new leader in investment consulting for endowments, foundations and the private wealth and health care markets.
Terms of the agreement were not disclosed.
Mercer will build upon Hammond’s position as the third largest investment consulting firm serving endowments and foundations in the US. The acquisition further enhances Mercer’s alternative research and investment capabilities and provides additional consulting opportunities in the private wealth and health care markets.
The acquisition of Hammond strengthens Mercer’s position in one of the fastest-growing segments of investment consulting in the US. In the period 2005 to 2009, endowment and foundation funds using investment consulting services grew at a compound rate of 10% annually, compared to a 5% annual rate of growth for both corporate and public funds in the US1.
“This acquisition underscores Mercer’s commitment to our investment business and our determination to increase our US market share,” said Jeff Schutes, Mercer’s US investment consulting leader. “Mercer is growing at a time when clients are demanding greater resources and depth of expertise from their investment consultants. The acquisition pairs Mercer’s global reach and expertise with Hammond’s leadership in US endowment and foundation consulting, and with its significant reputation in private wealth and health care sectors.
“In the current challenging investment market, we believe the Hammond acquisition will significantly improve our ability to help clients make informed, sound and strategic investment decisions,” said Mr. Schutes. “It underscores our commitment to meeting the growing needs of our clients and to invest in the investment consulting business. It will also enable us to provide strategic consulting and to demonstrate our depth of expertise in alternative investments such as private equity, hedge funds, and infrastructure. We feel this will be a significant competitive advantage in a changing market environment. “
About Hammond Associates
Hammond Associates, founded in 1985 and based in St. Louis, Mo., is one of the nation’s foremost institutional fund consultants. With more than 200 clients, it is the third largest investment consulting firm in the US focused on endowment and foundation clients. Its more than 120 investment professionals include former chief investment officers, academicians, researchers, management consultants and corporate financial executives.
Mercer is a leading global provider of consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits. It is a leader in benefit outsourcing. Mercer’s investment services include investment consulting and multi-manager investment management. Mercer’s more than 20,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago and London stock exchanges. For more information, visit www.mercer.com.