State Street Launches Front to Back Private Markets Solution

Rhea-AI Summary

State Street Corporation (NYSE:STT) has announced an acquisition of Mercatus, Inc., enhancing its front and middle office solutions for private market managers. The deal emphasizes the launch of the State Street Alpha^SM for Private Markets solution, which aims to streamline investment management across diverse asset classes. The transaction, pending customary conditions, is set for completion in September. This move is part of State Street's strategy to address inefficiencies in private market processes and to support institutional investors' complex needs.

Positive

• Acquisition of Mercatus enhances State Street's capabilities in private market solutions.
• Launch of State Street Alpha^SM for Private Markets aims to streamline investment management.
• The solution will offer integrated management for various asset classes, improving efficiency.

Negative

• None.

State Street Corporation (NYSE:STT) announced today that it has entered into an agreement to acquire Mercatus, Inc., a premier front-and-middle-office solutions and data management provider for private market managers. The transaction is expected to be completed in September subject to customary closing conditions. Financial terms are not being disclosed.

In connection with the acquisition, the company will launch its State Street Alpha^SM for Private Markets solution which will allow institutional investors to fully manage the entire lifecycle of their infrastructure, private equity, real estate, private debt and fund of funds investments through a fully integrated, digital front-to-back, single platform. This includes the ability to provide whole portfolio exposure to managers investing in both 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 reach across key areas such as cloud-based asset management, deal management, ESG, investor relations and portfolio monitoring allowing clients to make faster and more informed investment decisions as well as improve client service levels with better responsiveness and transparency. In addition, it will enable clients to have more granular visibility into asset and fund level data to help solve challenges caused by increased fund complexity, more sophisticated investors, the need for better transparency and regulatory obligations.

"Investors in both public and private markets are realizing 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."

“Institutional investors are turning to the private markets as the hunt for alpha intensifies,” said Paul Fleming, executive vice president and global head of State Street's Alternatives Segment. “Expanding our alternative offerings will help us meet the multifaceted needs of these investors and provide our clients with even more solutions.”

Mercatus has operations in the US, UK, and India, and manages more than $1 trillion invested capital across its global private markets client base. Mercatus’s client base includes some of the most sophisticated managers in private equity, infrastructure, real estate and private debt.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $42.6 trillion in assets under custody and/or administration and $3.9 trillion* in assets under management as of June 30, 2021, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of June 30, 2021 includes approximately $64 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

© 2021 State Street Corporation - All Rights Reserved

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005497/en/

FAQ

What is the acquisition announced by State Street Corporation involving Mercatus, Inc.?

State Street Corporation announced the acquisition of Mercatus, Inc. to enhance its front and middle office solutions for private market managers.

When is the acquisition of Mercatus, Inc. by State Street expected to be completed?

The acquisition is expected to be completed in September, pending customary closing conditions.

What new solution will State Street launch following the Mercatus acquisition?

Following the acquisition, State Street will launch the State Street Alpha^SM for Private Markets solution.

How does State Street's acquisition of Mercatus affect institutional investors?

The acquisition aims to address inefficiencies in private market processes, providing institutional investors with improved investment management solutions.

What services will the State Street Alpha^SM for Private Markets solution provide?

The solution will enable full lifecycle management of private equity, real estate, private debt, and fund of funds investments on a single platform.