Mercer closes acquisition of Winnipeg investment consultancy Pavilion
New York-based human resources consultancy Mercer has concluded its acquisition of the investment, alternatives, and wealth management consulting operations of Pavilion Financial Corporation. The firm also concluded its acquisition of St. Louis-based investments consultancy Summit Strategies Group.
On August 14, global HR consultancy Mercer announced its intention to acquire Pavilion, a Winnipeg-based investment consultancy. That transaction has now closed, effective November 30, 2018. Terms of the deal were not disclosed.
Founded in 2006, Pavilion quickly grew to a headcount of 300 professionals in offices across North America, the UK, and Singapore. In 2017, the investment consultant was ranked 13th in worldwide assets under advisement (US$685 billion.
Seeing an excellent opportunity to enhance its Wealth business – which includes investment and retirement consulting, as well as pension plan advisory – Mercer decided to snap up the Winnipeg firm. As of June 30, 2018, Mercer had more than $11 trillion in assets under advisement globally.
According to Mercer, the deal gives its consultants and clients access to broader and deeper global research capabilities, as well as Pavilion’s specialist resources. “Pavilion’s strength in the healthcare, insurance and endowment and foundation segments, coupled with Mercer’s global intellectual capital, will support the delivery of customized, holistic solutions to our clients,” said Rich Nuzum, President of Mercer’s global wealth business. “We look forward to integrating Pavilion’s not-for-profit consulting capabilities and its specialized alternatives advisory platform with our current client offerings.”
Mercer previously stated that it would maintain the Pavilion brand to provide investment services to institutional nonprofits and insurance sector clients.
Commenting on the deal closure, Pavilion President and CEO Daniel Friedman said, “The Pavilion name will represent Mercer’s U.S. not-for-profit and insurance offerings. Our alternatives platform will feature the customized consulting offering of a full-spectrum alternatives boutique, and the implementation and research capabilities of a truly global firm. Finally, wealth management clients will have expanded advice and access to tools and products, including Mercer’s retirement savings investment solutions.”
The acquisition of St. Louis-based investment consultancy Summit Strategies, announced at the same time as Pavilion, also closed last month on November 15th. Founded in 1995, the firm had about $160 billion under advisement, and was also a strong player in the non-profit investment and alternatives space.
“We are pleased to announce the closing of this transaction, as we believe Summit’s high-touch client service experience coupled with Mercer’s global investment capabilities and world-class research will benefit our collective clients,” Nuzum remarked. “We value client relationships and we are committed to maintaining the level and quality of service that Summit has always delivered. Clients will continue to work with their existing consulting team while also accessing Mercer’s global breadth and resources.”
