Mercer boosts wealth advisory business through acquisition of India Life Capital

26 June 2018 3 min. read

As overall wealth levels are growing in India, so to is the market for capital investments. Global wealth and investment consultancy Mercer has made a move to benefit from this scenario through the acquisition of India Life Capital – a Bangalore-based consultancy that operates across some of the country’s biggest financial centres.

General prosperity levels in India are increasing by the year, which is driven primarily by the wealthiest segments in the country, but is strongly supported by a rapidly expanding middle class, particularly in the major urban centres. Mercer is looking to tap into the long-term plans for investment that often accompany an increase in the bank balance.

The firm’s designs for the country revolve specifically around the new regulations regarding retirement funds that the government has been introducing in the last three years. The essential objective of the amendments is to bring the equity allocation for retirement funds up from 0 to 15%, leaving room for further growth in the future.

Those looking to exploit these favourable conditions are busy devising plans for their long-term investments in pension funds, and are increasingly looking to consulting firms active in the investment services domain for support. Founded in 1996, India Life Capital (ILC) is a firm of precisely this nature.

Mercer boosts wealth advisory business through acquisition of India Life Capital

Currently, ILC’s advisory portfolio includes over 150 retirement trusts, which can be placed at a cumulative value of $4 billion. This substantial business is conducted out of offices in three of India’s biggest financial centres – New Delhi, Mumbai, and Bangalore, where the firm is headquartered.

The firm offers investment services, spanning the consulting and advisory domains, including portfolio reviews, drafting of investment policies, evaluations, reporting, asset & fund allocation advisory, and a range of other areas. This entire operation – coordinated by 20 professionals – has now come under the ownership of Mercer.

For Mercer, this represents a boost to its mammoth global operations, which includes nearly 30,000 clients worldwide, served by over 23,000 employees, generating over $4 billion in revenues. The firm is a wholly owned subsidiary of Marsh & McLennan, and specialises in advisory services for the wealth and investment sectors.

Commenting on the acquisition, Anish Sarkar, CEO of Mercer India said, “The India Life acquisition will help Mercer to expand its existing wealth business in India. It enables us to offer investment advisory services to retirement funds and other institutional assets, and also bring in the full portfolio of Mercer's Investments  solutions to our clients here. Mercer enjoys a leadership position globally on Investment advisory  business and we are keen to expand that with our clients in India. We want to continue to bring world-class offerings and innovative solutions to grow the market.” 

Amit Gopal, Senior Vice President of ILC added, “The future is made in the actions we take together, today. Mercer together with ILC will deliver greater value to our clients in India and around the world.”