StepStone Group is to acquire private debt and hedge fund solutions provider Swiss Capital Alternative Investments. Completion of the deal will follow customary regulatory approvals and is expected to close before year end 2016.
Terms of the acquisition have not been disclosed.
Swiss Capital is an international alternative asset manager with more than USD5 billion of assets under management offering customised solutions across a variety of platforms to institutional investors, primarily in Switzerland, Germany and Austria.
As part of the acquisition, StepStone will launch StepStone Private Debt and StepStone Hedge Funds, which will combine StepStone’s global capabilities and significant institutional client network with Swiss Capital’s deep expertise in private debt and hedge fund strategies. This enhanced platform aims to deliver superior risk-adjusted returns through highly customised portfolios. StepStone already offers several private markets solutions, including private equity, private debt, real estate, infrastructure, and real assets. The addition of the Zurich and Dublin offices will expand StepStone’s local European presence to more than 70 professionals. Swiss Capital’s management team will continue to lead the private debt and hedge fund teams and is responsible for the management of these two business lines.
Monte Brem, Chief Executive Officer of StepStone, says: “Private debt has become a crucial strategy as institutions facing overexposure to maturing bonds and low yields seek to diversify and replace current investments with debt instruments that can meet their return criteria. Swiss Capital’s deep expertise in constructing customised private debt solutions perfectly complements StepStone’s approach to serving clients in other private markets.”
David Jeffrey, StepStone Partner and the head of European operations, adds: “The addition of the Swiss Capital team builds on StepStone’s expertise in private debt, allowing us to offer a full suite of private debt solutions, including hedge fund strategies. Swiss Capital has a proven track record of global execution that goes back nearly 20 years. Their team brings an important local presence in continental Europe, where their fluency with languages, cultures and regulatory processes are key differentiators in adding value to our clients’ investment decisions.”
Hans-Jörg Baumann, Chairman of Swiss Capital, says: “This partnership is a unique combination of complementary offerings and skills. Both institutions have long track records of exceeding clients’ expectations and achieving strong returns for investors. Together, we will deliver expertise in assessing, investing, managing and advising on the entire range of alternative investments. This new partnership will benefit clients greatly by providing increased insight and access into all areas of the global private markets.”
Marcel Schindler, CEO of Swiss Capital, adds: “Our expertise in investing in the full range of private debt activities and hedge funds is based on a customized approach combined with an in-depth knowledge of managing large-scale alternative investment portfolios. The combined StepStone platform allows for global expansion in investment capacity for the benefit of clients. Our robust infrastructure and investment knowledge is an edge in the alternative investment universe.”
