State Street Corporation announced it has entered into an agreement to acquire Mercatus, Inc., a data management provider for private market managers. The transaction is expected to be completed in September. Financial terms are not being disclosed.
State Street Corporation recently reported a 10% rise in profits in the second quarter of 2021. To coincide with the acquisition, the company will also launch its State Street AlphaSM for Private Markets solution which will allow institutional investors to manage the entire lifecycle of their investments through a single platform. This will also include the ability to provide whole portfolio exposure to managers investing in 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 cover cloud-based asset management, deal management, ESG, investor relations and portfolio monitoring. This will allow clients to make faster and more informed financial decisions as well as providing greater efficiency, and more detailed visibility into asset and fund level data.
“Investors in both public and private markets are realising 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.”
Mercatus has operations in the US, UK, and India, and manages more than $1trn of invested capital across its client base, which includes managers in private equity, infrastructure, real estate and private debt.