UK asset manager Schroders has made a move to bolster its sustainable investing and emerging market capabilities, having agreed to acquire to majority stake in BlueOrchard.
Swiss impact investor BlueOrchard was founded in 2001 and has around $3.5 billion in assets under management. It claims to be the world’s first commercial manager of microfinance debt instruments, and also provides investment services across credit, private equity and sustainable infrastructure.
Schroders said in a statement that the acquisition will help to better serve clients who are increasingly seeking environmental, social and governance (ESG)-based investment strategies, while accelerating the growth of its private debt and private equity investments in emerging and frontier markets.
“Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard’s expertise in this area is exceptional,” said Peter Harrison, Group CEO of Schroders. “They share our values, recognising that through our combined contributions, we can purposefully affect positive change. They are a blueprint for the future of our industry and we are delighted to partner together.”
Terms of the deal were not disclosed, and the acquisition is expected to close in the second half of this year subject to regulatory approvals and closing conditions. Upon completion, Schroders added that there will be no changes to the management team or strategies and processes at BlueOrchard.
“With the backing of such a strong and like-minded institutional partner, we will be able to further drive innovation and growth and increase our impact substantially, while retaining our investment and operational autonomy,” Patrick Scheurle, CEO of BlueOrchard, also commented. “We look forward to continuing to provide an excellent service and the best possible impact investment solutions to our clients.”