SCM Eyes U.S. Expansion

SCM Strategic Capital Management AG, a Zurich-based adviser to institutional investors and publisher of an annual study on partnership terms and conditions, may open an office in the United States following the launch of offices earlier this year in London and Hong Kong.

CEO Stefan Hepp said that he has watched with interest the dwindling number of U.S. advisory shops that emphasize non-discretionary services, a less lucrative enterprise, in general, than providing discretionary work. SCM Strategic Capital, which prides itself on non-discretionary work for its mainly European clientele, figures it may be able to fill the breach.

The firm hasn’t decided exactly how to go about its entrée in United States. Possibilities include acquiring an advisory shop, or establishing a joint-venture with one, according to Hepp. Were it to simply open a branch office here, the firm would most likely do so in New York City.

As an investor, the 12-year-old shop is already an experienced hand in the United States, having channeled hundreds of millions of dollars in client money into funds managed by such firms as Advent International, The Blackstone Group, and Hellman & Friedman. The firm also has invested heavily with fund managers in Europe and, to a smaller extent, in Asia. Altogether the firm advises investors holding some $6 billion in private equity, infrastructure and real estate assets; of that sum $4 billion is non-discretionary…

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