The acquisition of specialist private equity firm Adveq, which was announced on Thursday, will boost the size of Schroders’ private asset holdings by around $7bn (£5.5bn), pushing the firm's total private assets up to £19.5bn.
Adveq has a mostly Swiss and German client base but has recently branched out to establish a premium client base in the US.
Peter Harrison, group chief executive of Schroders, said the acquisition worked due to the similar cultures between the firms.
He added: “Adveq’s impressive investment proposition, proven track record and strong position within key markets makes this partnership a complementary combination.
"We look forward to introducing Adveq’s unique capabilities to our clients.”
The investment team and process for Adveq clients will not change after the merger, Schroders confirmed.
Stephen Mills, chairman of the board of Schroders’ Swiss branch, will join the board of Adveq as chairman.
Adveq’s founder and chairman Bruno Raschle will remain on the board as a non-executive vice chairman.
Raschle said: “We are delighted with today’s announcement. Partnering with Schroders, a FTSE 100 global investment management business, provides Adveq with access to new markets and an enhanced proposition for our clients.
"Schroders’ stable ownership structure and heritage, which is closely aligned with Adveq’s long-term investment philosophy makes this an excellent fit.”