Marsh & McLennan, a US-based multinational professional services, risk management and insurance brokerage firm, recently announced that its wholly owned subsidiary Mercer had inked a deal to buy SCM Strategic Capital Management AG. The deal, intended to ramp up the company’s alternative investment capabilities, is expected to see light in the first quarter of 2015. Alternative investments are gaining importance in the global institutional marketplace and as such, addition of SCM Strategic Capital to the company’s portfolio will provide a competitive edge to Mercer besides adding capabilities, which will in turn accelerate revenue growth. Mercer noted that its clients are increasingly looking for advice regarding alternative investment strategy, either through a custom portfolio or a delegated solution. Thus, the acquisition forms a perfect strategic fit. As of September 30, 2014, Mercer had $108 bn in assets under management, including $13 bn in alternative assets under management. Marsh & McLennan has always adopted the inorganic path to ramp up its growth profile. The acquisitions are well supported by the company’s strong liquidity position. While cash and cash equivalents totaled $ 2.6 bn at third-quarter end (up 15% from 2013 end-level), retained earnings were solid at $10 bn (up 6.2%). I believe that improving economic conditions in the world will support demand for Marsh & McLennan’s services going forward. The company will also continue to focus on acquiring entities that are well established in insurance and risk management businesses to expand its presence in the US and internationally. M&A activity will contribute to revenue growth, and combined with cost control, this, in my opinion, will help the company to maintain double digit EPS growth rates in the coming years. Rising dividends and substantial buyback program will also support investor’s loyalty. With target price of $62, Marsh & McLennan’s shares, I believe, are attractive for medium-term investment.