Mercer Buys BFC Asset Management
Mercer, a global consulting firm active in advancing health, wealth, and career, and a wholly-owned subsidiary of Marsh & McLennan Companies, Inc., today announced it has acquired BFC Asset Management Co., Ltd., one of Japan’s leading independently owned multi managers, focused on alternative investment strategies. The acquisition strengthens Mercer’s presence in Japan and enhances the firm’s ability to address the growing alternative investments needs of Japanese institutional investors. Terms of the agreement were not disclosed.
BFC is a truly client-centric firm and one of Japan’s successful providers of alternative investment solutions focusing on hedge fund and private equity strategies. They are an ideal complement to Mercer’s nearly 40 year history of strength and success in the provision of strategic investment advice in Japan,” said Tatsuya Kamoi, CEO Japan and Far East Zone for Mercer. “The combination of our firms will ensure Japanese investors have access to world class delegated investment solutions, including a spectrum of traditional and alternative investments, research and advice capabilities.”
BFC Asset Management Co., Ltd., established in 2006, specializes in investing in performance-enhancing solutions to deliver positive absolute returns to well-diversified portfolios, while reducing volatility and risk.
“For more than 10 years we have worked hard to deliver the highest client service, and today’s announcement will enable us to continue to deliver on this commitment,” said Noriyuki Kawana, Chairman and Chief Executive Officer, BFC. “We will be able to further support our clients based on Mercer's world class investment manager research across all asset classes and strong delegated implementation capabilities. Mercer’s powerful resources will further empower our ability to deliver quality client solutions across Japan – which remains our highest priority.”
The global investment environment has become ever more challenging with ultra-low bond yields, high equity valuations and greater financial market complexity. The demand for new investment thinking, more sophisticated solutions and better governance among investors remains prominent. In Japan, institutional investors are diversifying away from government bonds into, among other areas, foreign markets and alternative investment funds. This acquisition will enhance the Mercer delegated solutions service offering for investors in Japan and expand the firm’s role as a leading provider of investment solutions across a wide range of alternative and non-alternative investments including long-short funds, private equity and debt, real estate, infrastructure, hedge funds, and commodities.
A statement of Mercer’s increasing commitment, strengthened market position and growing foothold in the Japanese market, this acquisition follows the establishment of Mercer Investment Solutions, Ltd. (MIS), the firm’s delegated solution business in Japan in May of 2015.