Mercer to Buy Vanguard’s OCIO Business

Mercer, Marsh McLennan’s financial services and consulting arm, has agreed to buy Vanguard’s U.S. outsourced chief investment officer (OCIO) business, which focuses on not-for-profit organizations and other institutional investors.

The firms did not provide terms of the deal.

The acquisition of Vanguard Institutional Advisory Services by Mercer, which provides OCIO services to retirement plan sponsors, is expected to be completed in the first quarter of 2024. As part of the transaction, Vanguard’s approximately 120-person OCIO team will transfer to Mercer.

“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,” said Marc Cordover, Mercer US investments and retirement leader.

Mercer appointed Jennifer Kruse as OCIO leader earlier this year to supervise its U.S. OCIO business and team, as well as implement strategic initiatives, drive business development, and manage and extend client relationships.

Mercer has been providing OCIO services since 2005. The acquisition will add more than 1,000 clients to the firm’s existing business. Mercer’s assets under management as of September 30 were $379 billion. Vanguard’s assets were not disclosed.