New York-based insurance giant Marsh & McLennan Cos. announced this month that its private equity group, MMC Capital, will be handed over to its current team of investment professionals, headed by chairman and CEO Charles Davis. The company expects the spinout to be completed by the end of March.
MMC Capital closed its current fund, Trident III, with $1.1 billion last year and has about $3 billion under management. The group invests in employee benefits, financial services and insurance companies. Marsh & McLennan will continue to be the largest LP in MMC funds, but will no longer hold ownership position; nor will it have investment decisions.
MMC Capital’s eminent departure is the latest in a series of private equity spinouts. J.P. Morgan Chase also recently announced that its private equity unit, JP Morgan Partners, would be spun out by late 2006.