State Street Launches Front to Back Private Markets Solution
July 21 2021 - 8:00AM
Business Wire
Agrees to Acquire Mercatus, Inc. to Offer Fully Integrated
Platform For Growing Private Market Segments Including
Infrastructure, Private Equity, Real Estate, Private Debt and Fund
of Funds
State Street Corporation (NYSE:STT) announced today that it has
entered into an agreement to acquire Mercatus, Inc., a premier
front-and-middle-office solutions and data management provider for
private market managers. The transaction is expected to be
completed in September subject to customary closing conditions.
Financial terms are not being disclosed.
In connection with the acquisition, the company will launch its
State Street AlphaSM for Private Markets solution which will allow
institutional investors to fully manage the entire lifecycle of
their infrastructure, private equity, real estate, private debt and
fund of funds investments through a fully integrated, digital
front-to-back, single platform. This includes the ability to
provide whole portfolio exposure to managers investing in both
public and private markets.
“Investors in private markets have historically struggled with
inefficient and manual processes because existing solutions are too
fragmented and rigid to meet their changing investment
requirements,” said Spiros Giannaros, president and chief executive
officer of Charles River Development, a State Street Company.
“Mercatus’s focus and solution for private markets augments Charles
River’s market leading platform for public markets, enabling us to
support clients across the full spectrum of their investment
needs.”
The solution will also reach across key areas such as
cloud-based asset management, deal management, ESG, investor
relations and portfolio monitoring allowing clients to make faster
and more informed investment decisions as well as improve client
service levels with better responsiveness and transparency. In
addition, it will enable clients to have more granular visibility
into asset and fund level data to help solve challenges caused by
increased fund complexity, more sophisticated investors, the need
for better transparency and regulatory obligations.
"Investors in both public and private markets are realizing the
risk and inefficiencies created across their bespoke front, middle,
and back office solutions," said Haresh Patel, chief executive
officer of Mercatus. "We are excited to join forces with State
Street and Charles River Development to achieve a new one office
vision and deliver a fully integrated front to back; public to
private; technology, data, and services offering all under one
platform."
“Institutional investors are turning to the private markets as
the hunt for alpha intensifies,” said Paul Fleming, executive vice
president and global head of State Street's Alternatives Segment.
“Expanding our alternative offerings will help us meet the
multifaceted needs of these investors and provide our clients with
even more solutions.”
Mercatus has operations in the US, UK, and India, and manages
more than $1 trillion invested capital across its global private
markets client base. Mercatus’s client base includes some of the
most sophisticated managers in private equity, infrastructure, real
estate and private debt.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $42.6 trillion in assets
under custody and/or administration and $3.9 trillion* in assets
under management as of June 30, 2021, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of June 30, 2021 includes
approximately $64 billion of assets with respect to SPDR® products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
© 2021 State Street Corporation - All Rights Reserved
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version on businesswire.com: https://www.businesswire.com/news/home/20210721005497/en/
Media Contact: State Street Ed Patterson
epatterson@statestreet.com +1 404 213 3106
Media Contact: Mercatus Ali Mamujee
amamujee@gomercatus.com + 1 832 630 6241
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