The investment consulting arm of global advisory firm Mercer has bolstered its US business with the acquisition of a rival consultant, Hammond Associates, a month after abandoning the US public sector pension scheme business and 18 months after dropping the purchase of another rival.

Hammond is the third-largest investment consulting firm serving university endowments and charitable foundations in the US, and Mercer said the purchase would provide Mercer with a significant boost in this area, and the US private wealth and health care markets. The purchase should also enhance Mercer's capability in alternative investment management, including research into managers of hedge funds, private equity, real estate, commodities, infrastructure and other alternatives.