Mercer is enhancing its approach to private market investing for institutional clients and pension funds across Germany and the broader DACH region, focusing on customised capital allocation strategies.
The firm has partnered with Universal Investment to launch a closed-end special alternative investment fund (AIF) tailored to the needs of German institutional investors.
The fund will target infrastructure, private debt and private equity assets, leveraging Mercer Alternatives for investment selection and Universal Investment for structuring and administration.
The initiative responds to growing demand from German investors for greater access to private markets while addressing structural and regulatory challenges.
“The goal is to find suitable investments and, at the same time, use an appropriate investment structure [for private markets],” Jeffrey Dissmann, head of investment consulting at Mercer Deutschland, told IPE.
German investors have traditionally encountered barriers when investing in private markets, particularly due to regulatory constraints under the German Capital Investment Code (KAGB), which limit the use of common limited partnership (LP) vehicles.
Dissmann noted that open-ended feeder funds, such as Luxembourg-based FCPs, often used in the past, may not align well with the requirements of the European Union’s Anti-Tax Avoidance Directive II (ATAD II).
By contrast, a closed-end German special AIF structure provides a more tax-efficient route that complies with ATAD II while preserving institutional preferences, he added.
Private markets have become a core component of pension fund portfolios across the DACH region.
To further support this trend, Mercer Alternatives is preparing to launch an evergreen infrastructure equity strategy in the fourth quarter of 2025, in collaboration with Helvetia Anlagestiftung, aimed at Swiss pension schemes.
In Germany, Mercer and Universal Investment have also sought to remove tax-related hurdles by offering a feeder fund that invests exclusively in a single Luxembourg SCS (Société en Commandite Spéciale) structure, enabling compliant and efficient access for local investors.
“Initial investments have already been made,” Dissmann confirmed.
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Luigi is IPE's Berlin-based DACH correspondent.
His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market.
He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile
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