Mercer Investment Consulting has completed the acquisition of Hammond Associates, in a deal that creates a new entity specializing in endowments, foundations, and the private wealth and health care markets.

News of the planned merge was earlier reported by Family Wealth Report.

The acquisition comes at an opportune time for both firms, what with the number of endowment and foundation funds using investment consulting services recording a compound growth rate of 10 per cent per year since 2005. Hammond is one of the largest consulting firms in the US, with more than 120 professionals and a client base of no less than 200.

"Mercer is growing at a time when clients are demanding greater resources and depth of expertise from their investment consultants. [The acquisition] will also enable us to  provide strategic consulting and to demonstrate our depth of expertise in alternative investments, such as private equity, hedge funds, and infrastructure," Jeff Schutes, US investment consulting leader for Mercer, commented in a statement.

The agreement took effect on 3 January 2011.