The deal, which was announced on Thursday, is expected to close in the second half of 2017, and will boost the size of Schroders’ private asset holdings by around $7bn (£5.5bn), pushing the firm’s total private equity 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.”
Schroders, the UK’s largest listed standalone asset manager with around £400bn in assets under management, said there would be no changes to Adveq’s investment team, process or strategies after the merger.
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.”