Mercer's Proprietary Fund-of-Funds Reshapes Private-Market Access for Ultra-High-Net-Worth Clients

Mercer Advisors, overseeing $115 billion in assets, has launched its own fund-of-funds platform Aspen Partners to cut out intermediaries and deliver institutional-grade private-market exposure directly to its wealthiest clients.

Aspen Partners: Mercer's In-House GP

The platform offers the firm's ultra-high-net-worth clients direct access to private equity, venture capital and credit strategies through an internally managed general partnership.

Scale Advantages and Cost Savings

■Mercer's $115 billion AUM enables direct relationships with Deloitte and Paul Weiss for fund formation and hiring dedicated private-markets professionals.

■By eliminating the extra layer of 1-and-10 or 1-and-15 fees typical of third-party platforms, Aspen Partners improves net returns for clients.

■An internal GP run by Mercer employees and overseen by its investment committee applies the same rigorous sourcing and underwriting standards used by pensions and endowments.

FinTech Partnerships and Future Outlook

■Partnerships with fintech firms Opto Investments and Arch provide turnkey solutions that let RIAs launch their own fund-of-funds with minimal technical overhead.

■These platforms integrate with Mercer's technology stack, offering flexibility to adapt quickly to evolving private-market trends.

■The growing trend of large RIAs establishing proprietary GP entities challenges the intermediary model of iCapital and CAIS, which has historically served smaller advisers.

Establishing an in-house GP is not merely a cost-saving move; it embeds private-market capability inside the adviser, enhancing long-term alpha generation. Bora Yalın