Schroders acquires Adveq

The development comes just four months after Adveq held a final close for its Adveq Europe VI fund on €462m.

Earlier in 2016, the LP announced it had held final closes for two of its vehicles: Adveq Specialised Investments, for which it raised €323m in commitments, and Adveq Europe Co-Investments, which closed on €102m.

The deal forms part of Schroders' strategy to expand its private assets business, with the acquisition intended to complement its real estate and infrastructure arms.

In Europe, Adveq focuses exclusively on private equity, with a particular focus on small buyout funds. In addition, the firm has pockets dedicated to venture capital and turnaround vehicles. Adveq now manages a total of $7bn in commitments, according to a statement, with the LP primarily raising capital from pension funds, insurance companies and university endowments.

Adveq confirmed there would be no changes to its investment team as a result of the Schroders deal. The transaction is expected to complete in H2 of 2017, subject to regulatory approval.

Adveq recently featured in the unquote" LP Profile series.

Head over to unquote" data for a more detailed view of Adveq's strategy and investments, including a list of individual funds backed by the LP.

The deal is also the latest in a series of consolidation plays in the LP landscape. In October 2016, HarbourVest secured an agreement to wholly acquire the investment portfolio of SVG Capital for £807m, bringing to an end a fiercely competitive bidding war involving Pantheon Ventures, Pomona Capital, Goldman Sachs and Canada Pension Plan Investment Board. Four months earlier, US-based firm Pavilion Financial Corporation acquired private markets advisory firm Altius Associates, marking its fifth acquisition since 2010.

More recently, LGT Capital Partners acquired private debt house European Capital Fund Management from Ares in March 2017.

SL Capital has also been in consolidation mode in recent years, taking over management of Aviva Investors' PE portfolio in February 2016 and acquiring a stake in Pantheon's European private equity fund in 2014. The LP's parent, Standard Life, itself merged with Aberdeen Asset Management earlier this year in an £11m deal, giving birth to a European asset manager with significant exposure to private equity.

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