Mercer raises $2.7bn for co-invests, secondaries

The fund has sub-vehicles investing in asset classes such as PE, debt and infrastructure, each of which can commit 30% to secondaries.

Mercer Investments, the global consultancy’s asset management arm, has raised $2.7 billion to invest across private asset classes, sister publication Secondaries Investor reported.

Mercer Private Investment Partners V can make secondaries investments and co-investments in private equity, private debt, infrastructure, real estate, real assets and sustainable opportunities, according to a statement announcing the close.

The fund was backed by 125 investors including corporate and public pension funds, insurance companies, asset managers and endowments from Europe, North America, Asia-Pacific and Africa.

The fund is a “one-stop” solution for institutional investors that want flexible, cost-effective access to private market opportunities, the statement notes.

According to a spokesperson, each asset class has a maximum allocation to secondaries of 30 percent. The fund primarily buys single fund stakes but can buy portfolios and stakes in funds of funds.

The fund had been in market for just over two years, according to PEI data. Predecessor PIP IV raised $2.6 billion by final close in September 2016 after one year in market. Investors include endowments Iowa West Foundation and Luther College.

Mercer had more than $20 billion in alternatives assets under management and $182 billion under advisement as of 31 December. It employs more than 170 alternatives professionals.

Fundraising for secondaries strategies dipped to a four-year low last year, when at least 32 funds collected $36.9 billion in the 12 months to the end of December – a 22 percent drop on the previous year and the lowest annual fundraising figure since 2015, Secondaries Investor reported.