A New Addition to the State Street Family
How is the acquisition of Mercatus accelerating the launch of
State Street AlphaSM for Private Markets?
We are excited to welcome the Mercatus team to State Street in an acquisition that was recently finalized. We have more to share about Mercatus, its technology and our new State Street AlphaSM for Private Markets platform in the coming weeks. But first, we wanted to introduce our clients and partners to this exciting and innovative technology firm.
Who is Mercatus?
Mercatus is an investment data management platform for private markets that was founded 12 years ago by Haresh Patel and Tim Buchner, two longtime technology executives based in San Mateo, California. Like many Silicon Valley startup stories, Mercatus’ history is based on a combination of strategic opportunity and hard work.
Haresh and Tim came from the renewable energy industry and they were well positioned to create a business connecting investors with energy projects seeking funding. It wasn’t long before the small team ran into the very same data challenges that Alpha for Private Markets solves for investors today: bespoke financial models, mitigating the inefficiencies of analyzing siloed data in Excel and delivering forward-looking analysis. When Mercatus built a software platform and data architecture to solve these challenges for one of their clients, they realized the value of their new business model and continued to work on improving it.
In its early days, Mercatus focused on sustainable infrastructure investments, with a mission to support and grow renewable power technologies by providing data transparency for their investors. They soon expanded to solve the complexities underlying all bespoke infrastructure investments, such as airports, data centers and highways. Based on the data architecture required in infrastructure investments, Mercatus eventually innovated its platform to include all private market segments, including real estate, private equity and private debt.
Today, Mercatus’ platform helps private market fund managers and asset owners scale their businesses and make smarter investment decisions by providing a holistic view of their data and insights. It offers access to flexible cloud-based asset management, deal management, portfolio monitoring, valuation management, environmental, social and governance, and investor relations solutions. It is the only data management platform that allows for valuation and scenario analysis at scale, based on their patented ModelSync technology, a key differentiator among its peers for its unique approach to managing data from the asset level.
How is this acquisition beneficial for our clients?
Both Mercatus and State Street have observed a shift among fund managers and asset owners, where the lines between public and private markets and front to back office are disappearing. We have also seen a growing trend with managers moving away from a decentralized data strategy to a more centralized one. By connecting all the pieces together, a unified data governance creates a flywheel effect, helping all functions to generate alpha and provide a differentiated client experience for their investors.
Private markets are positioned for fast growth and increasing complexity. With State Street Alpha for Private Markets and our acquisition of Mercatus, we can help clients solve end-to-end data challenges.