Schroders is to acquire River and Mercantile Group’s UK Solutions Division consisting of its fiduciary management and derivatives businesses. The transaction is valued at approximately GBP230 million.
As at 30 September 2021, the Solutions Division had approximately GBP42 billion of assets under management. The transaction is subject to RMG shareholders’ and regulatory approval and is expected to complete in the first quarter of 2022.
The acquisition reaffirms Schroders strategy to provide clients with the highest quality solutions for their complex investment needs. This business has an excellent track record and market leading proposition. It will further strengthen Schroders ability to meet the requirements of pension funds as they evolve.
Schroders expanded capability has the commitment, reach and resource to help all defined benefit and defined contribution schemes both large and small, address the challenges of delivering value and sustainable outcomes to all their members.
James Barham, CEO of River and Mercantile Group, will join Schroders to continue to lead the Solutions Division reporting to Schroders Group Chief Executive Peter Harrison. The acquired division will retain its approach to strategic advice, investment process, integrated implementation and service model. In an open architecture framework, clients will have access to Schroders investment capabilities including private assets and leverage Schroders extensive sustainability expertise.
Peter Harrison, Group Chief Executive, Schroders, says: “This acquisition further enhances our ability to meet the increasingly complex needs of pension fund clients and is consistent with our growth strategy. The business brings with it a well-respected team, with a strong track record of success and is a good cultural fit with Schroders. We see significant opportunities from this partnership.”