Global consulting and investment services giant Mercer has announced it has struck a deal to acquire Hammond Associates, an American institutional fund consultant.
Mercer has said it plans to build upon Hammond’s position as the third largest investment consulting firm serving endowments and foundations in the U.S.
“Hammond is one of the three leading investment consulting firms serving endowments and foundations in the United States, and this acquisition clearly strengthens Mercer’s ability to serve this attractive client base,” said M. Michele Burns, chairman and CEO of Mercer.
Between 2005 and 2009, endowment and foundation funds using investment consulting services grew at a compound rate of 10% annually, double the growth rate for both corporate and public funds in the U.S.
“Mercer’s international research capabilities complement Hammond’s domestic expertise, which we believe provides additional growth opportunities,” Burns added. “We foresee many global opportunities for cross-fertilization of expertise that will be beneficial to our clients and consultants.”
Dennis Hammond, CEO and founder of Hammond Associates said the two firms share similar values and a commitment to excellence.
“We sincerely believe our clients will benefit from the experience, resources and global reach that result from this combination, which will result in a substantial increase in manager search and due diligence capabilities, including both traditional and alternative managers,” he said.
The transaction is expected to close at the end of 2010.