Over the last few years, we have seen investors increasing their allocations to both private markets and sustainable investment strategies as they look for ways to prepare their portfolios for the future.

 

We don’t see private markets and sustainability as distinct but complementary strategies within an investment portfolio. By considering the two, we think investors can make more informed choices with respect to their long-term strategy, potentially enhancing returns whilst minimising the downside. We believe that private markets are a natural home for sustainability strategies, owing to the typically longer hold periods and greater degree of involvement, which underlying fund managers have in their portfolio companies.

 

Sustainability is one of our core investment beliefs

We believe a sustainable investment approach is more likely to create and preserve long-term investment capital and more specifically that:
 

  1. Environmental, Social and Corporate Governance (ESG) factors can have a material impact on long-term risk and return outcomes and should be integrated into the investment process.
     
  2. Taking a broader and longer-term perspective on risk, including identifying sustainability themes and trends, is likely to lead to improved risk management and new investment opportunities.
     
  3. Climate change poses a systemic risk, and investors should consider the potential financial impacts of both the associated transition to a low-carbon economy and the physical impacts of different climate outcomes. 
     
  4. Stewardship helps the realisation of long-term shareholder value by providing investors with an opportunity to enhance the value of companies and markets.

 




Introducing Mercer's sustainable opportunities private markets solution


Many investor face difficulties when seeking to implement to sustainable investments through private markets. In response, we have developed our own sustainable opportunities portfolio to provide access to a diversified range of highly rated managers across the full range of environmental and social themes, asset classes and geographies. 

 

The portfolio seeks to deliver strong risk-adjusted returns from the targeted opportunity set of investments expected to benefit from the global shift towards a lower carbon economy and the need to address resource scarcity issues. The portfolio seeks exposure to environmental and social themes, which broadly align with a number of global standards including the UN Sustainable Development Goals.
 

Portfolio core investment themes


Measure against 5 UN Sustainable Development Goals
 

2 ZERO HUNGER 

6 CLEAN AND SANITATION 

7 AFFORDABLE AND CLEAN ENERGY 

11 SUSTAINABLE CITIES AND COMMUNITIES 

12 RESPONSIBLE CONSUMTION AND PRODUCTION 



Key characteristics of the solution


The strategy focuses on infrastructure (typically a renewable energy but also other types of sustainable infrastructure) and private equity (typically buy out, growth and venture capital). However, is also encompasses sustainable real estate (e.g. affordable housing), natural resources (e.g. timber and agriculture) as well as private debt. The strategy focuses on developed markets but can also allocate to other regions given the nature of the opportunity set in sustainable investing. The structured approach to portfolio construction is another characteristic feature of our proven investment strategy. We aim for optimal diversification across risk/return profiles, investment styles, vintage years, regions, sectors and types of investment, as well as managers and individual assets.
 


~10 fund positions

via Primaries and Secondaries,
excluding Co-Investments

Diversification

Private Markets Portfolio with a Sustainability Theme

Target Return

7-10% p.a.

Strategy

* Only sustainability focused strategies

Region

Investment Type

Theme


All target allocations or returns and projected portfolio diversifications are for informational purposes only.  There is no guarantee that the Fund will be able to implement its investment strategy and attain the allocations, returns, or diversifications presented.


 


Investing for a better tomorrow starts today


While change is not a choice, investors do have a decision to make. And for many, this goes beyond a simple opt-out strategy, which can sometimes close down a path toward future investment returns.

Discover how you can make that change




Meet our team

Julia Schiffer

Julia Schiffer

Senior Portfolio Manager Infrastructure

Ania Manczyk

Ania Manczyk

Private Equity Specialist

Amarik Ubhi

Amarik Ubhi

Global Head of Infrastructure, Alternatives

Rekha Owen

Rekha Owen

Investment Director – Private Markets

Rhonda Ryan

Head of Private Equity, Europe

Chason Beggerow

Global Head of Co-Investments and Secondaries


  • Our experience and credentials

        


    Why Mercer for your private markets portfolio


     

    ~$179B

    Global Alternatives Assets Under Advisement*

    Private Markets        ~$124bn

    Hedge Funds             ~$55bn   

     

    ~$22B

    Global Alternatives Assets Under Management*

    Private Markets        ~$15bn

    Hedge Funds             ~$7bn   

     

    25 years

    Private Markets experience

     

    15 years

    Track record managing
    Hedge Fund portfolios

     

    25 offices

    Globally**

     

    ~200 

    Global Alternatives professionals**

    Private markets        ~150

    Hedge Funds            ~50


    *  Assets Under Management and Assets Under Advisement as of December 31, 2019. Please see Important Notices for important information about Assets under Management and Assets under Advisement. Private markets assets based on committed capital. Hedge funds and other alternative assets based on Net Asset Value (NAV). Dollar amounts in USD. Excludes fee compliance assets. Due to rounding, totals provided may not precisely reflect the absolute figures.

    **  As of January 31, 2021; excludes administrative personnel.  

Insights

Speak with a Mercer specialist about Alternative Investments

We’re eager to speak with you. Please provide your details below.

*Required Fields

 

Important information

References to Mercer shall be construed to include Mercer LLC and/

or its associated companies.

 

© 2021 Mercer LLC. All rights reserved.

 

This contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity without Mercer’s prior written permission.

 

Mercer does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.

 

This does not constitute an offer to purchase or sell any securities.

 

The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed.

 

For Mercer’s conflict of interest disclosures, contact your Mercer representative or see http://www.mercer.com/conflictsofinterest.

 

This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances. Mercer provides recommendations based on the particular client’s circumstances, investment objectives and needs. As such, investment results will vary and actual results may differ materially.

 

Information contained herein may have been obtained from a range of third-party sources. While the information is believed to be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential or incidental damages) for any error, omission or inaccuracy in the data supplied by any third party.

 

Investment management and advisory services for US clients are provided by Mercer Investments LLC (Mercer Investments). Mercer Investments LLC is registered to do business as “Mercer Investment Advisers LLC” in the following states: Arizona, California, Florida, Illinois, Kentucky, New Jersey, North Carolina, Oklahoma, Pennsylvania, Texas and West Virginia; as “Mercer Investments LLC (Delaware)” in Georgia; as “Mercer Investments LLC of Delaware” in Louisiana; and “Mercer Investments LLC, a limited liability company of Delaware” in Oregon. Mercer Investments LLC is a federally registered investment adviser under the Investment Advisers Act of 1940, as amended. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Mercer Investments’ Form ADV Part 2A & 2B can be obtained by written request directed to: Compliance Department, Mercer Investments, 99 High Street, Boston, MA 02110.

 

Not all services mentioned are available in all jurisdictions. Please contact your Mercer representative for more information.

 

Certain regulated services in Europe are provided by Mercer Global Investments Europe Limited, Mercer (Ireland) Limited, Mercer Limited and Mercer Alternatives AG. Mercer Global Investments Europe Limited and Mercer (Ireland) Limited are regulated by the Central Bank of Ireland under the European Union (Markets in Financial Instruments) Regulation 2017, as an investment firm. Registered officer: Charlotte House, Charlemont Street, Dublin 2, Ireland. Registered in Ireland No. 416688. Directors: Sylvia Cronin, Michael Dempsey, Tom Geraghty, Abhishek Krishan, Deborah Mintern, Bruce Rigby (British) and Vincent Sheridan. Mercer Limited is authorized and regulated by the Financial Conduct Authority. Registered in England and Wales No. 984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU. Mercer Alternatives AG is registered with the Swiss Financial Market Supervisory Authority (FINMA) to act as a supervised asset manager for collective investment schemes as well as a licensed distributor and representative for its own foreign collective investment schemes.

 

Investment management services for Canadian investors are provided by Mercer Global Investments Canada Limited. Investment consulting services for Canadian investors are provided by Mercer (Canada) Limited.

 

Please see this link for information on indexes.

 

This presentation is for sophisticated investors only who are accredited investors or qualified purchasers. Funds of private capital funds are speculative and involve a high degree of risk. Private capital fund managers have total authority over the private capital funds. The use of a single adviser applying similar strategies could mean lack of diversification and, consequentially, higher risk. Funds of private capital funds are not liquid and require investors to commit to funding capital calls over a period of several years; any default on a capital call may result in substantial penalties and/or legal action. An investor could lose all or a substantial amount of his or her investment. There may be restrictions on transferring interests in private capital funds. Funds of private capital funds’ fees and expenses may offset private capital funds’ profits. Funds of private capital funds are not required to provide periodic pricing or valuation information to investors. Funds of private capital funds may invove complex tax structures and delays in distributing important tax information. Funds of private capital funds are not subject to the same regulatory requirements as mutual funds. Fund offering may only be made through a Private Placement Memorandum (PPM).

 

Copyright 2021 Mercer LLC. All rights reserved.