Mercer to Acquire Vanguard’s US Outsourced Chief Investment Officer Business

Mercer, a prominent player in transforming retirement and investment results and a subsidiary of Marsh McLennan (NYSE: MMC), revealed that it has finalized a deal to purchase Vanguard's outsourced chief investment officer (OCIO) business. This business segment delivers investment management services specifically tailored for not-for-profit entities and various institutional investors across the United States.

As outlined in the agreement, Mercer anticipates the transition of Vanguard's approximately 120-member OCIO team to its workforce as permanent employees. The completion of this transaction is projected to occur in the first quarter of 2024.

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 also added, “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.”

Source: Mercer