Schroders is buying a majority stake in an asset manager specializing in impact investments, which last year widened its Asian presence with the opening of a Singapore office.
The London-based money manager will acquire a majority stake in Geneva-based Blue Orchard, the two firms said in a joint statement on Friday. Neither disclosed financial details of the transaction.
The move bolsters the British fund manager's private debt and equity know-how in emerging markets – Blue Orchard manages $3.5 billion in assets, mainly credit, private equity, and sustainable infrastructure, largely in emerging markets.
The move underscores the appeal for traditional finance of fast-growing boutiques like Blue Orchard and Robeco SAM as investors grow more aware of the once-niche area. The segment topped $30 trillion last year, more than one-third more than 2016, according to a study by the Global Sustainable Investment Alliance.
Investors Sell
Blue Orchard management and staff will keep their stock; Schroders is buying the shares held by a series of undisclosed institutional investors who don't have an active role at the microfinance manager. Schroders said the acquisition will help it to more quickly expand in private debt and private equity investments in emerging markets.
Blue Orchard has considerable activities in Georgia, Tanzania, Cambodia, Myanmar, and Peru, among others. Since its founding in 2001, it has cultivated close relationships to local development agencies – expertise big asset managers are keen to buy.
Management Remains
Blue Orchard, co-founded by Jean-Philippe de Schrevel, an impact investing specialist and former McKinsey consultant, and Melchior de Muralt, a Swiss private banker, has disbursed more than $6 billion in its 18 years.
The Swiss firm's management around chairman Peter Fanconi and CEO Patrick Scheurle will stay on board; Schroders CEO Peter Harrison (pictured below) will join Blue Orchard's board, as will colleagues Georg Wunderlin and Stephen Mills.
For Blue Orchard, the deal means it can expand more rapidly with the help of the more than 200-year-old British fund manager, which is held to 47 percent by descendants of the founding family. The Swiss company doesn't disclose profits, but is believed to be profitable.
The acquisition is among the first notable splashes by traditional finance into sustainable investing. Blue Orchard enjoys notable Swiss backing, including from Pictet partner Boris Collardi, who sits on its board.
