Schroders Capital today announces it has received regulatory approval for its first UK Wealth market focused Long-Term Asset Fund (LTAF), a significant milestone as the firm focuses on providing investors with a broader selection of access points to private markets.
Earlier this month, Schroders Capital announced another market first after receiving approval for the first LTAF dedicated to UK venture capital.
LTAFs, a funds regime authorised by the UK’s Financial Conduct Authority, are designed to enable UK investors with longer-term horizons to invest in illiquid assets. The majority launched to date have allowed defined contribution (DC) investors to access private markets and have been structured as Authorised Contractual Schemes.
The newly launched Schroders Capital Wealth Solutions LTAF has been designed as an Open-Ended Investment Company (OEIC), meaning it can be made available to the UK Wealth market. The first fund launched will be the Schroders Capital Global Private Equity LTAF, a feeder fund into an existing strategy, the Schroders Capital Semi-Liquid Global Private Equity Fund. This fund, launched in September 2019, has grown to over $1.8 billion[1] and has a robust five-year track record.
Managed by Schroders Capital’s Head of Global Private Equity Portfolios, Benjamin Alt, the fund is focused on small-mid market buyout and growth investments globally. These encompass US and European SME buyouts and Asia growth companies, with a strong focus on technology and healthcare sectors.
James Lowe, Director, Private Markets, Schroders, said:
“This is a significant step forward; we believe that for the UK wealth community LTAFs will provide another access point to private markets and we expect this LTAF to be a complementary tool to existing private markets structures – like investment trusts – offering new flexibility in how UK investors will be able to meet their objectives via private market investments.”
Benjamin Alt, Head of Global Private Equity Portfolios, Schroders Capital, said:
“We are now able to bring the best of our expertise in private equity to UK private clients in a UK approved structure. This means access to the most attractive segments of private equity markets globally through a well-established fund with a proven track record. Private equity enables investors to access different parts of the economic ecosystem, bringing the potential for robust investment performance and the benefits of diversification.”
The firm is already a market leader in offering structures which provide greater access to private assets through its range of listed vehicles, as well as semi-liquid and illiquid structures. This will be Schroders’ fourth LTAF, having launched the UK’s first in April 2023.
