Schroders Capital launches wealth market LTAF
Schroders Capital has received regulatory approval for a wealth market focused long-term asset fund (LTAF).
Authorised by the Financial Conduct Authority, LTAFs are designed to enable UK investors with longer-term horizons to invest in illiquid assets.
The newly launched Schroders Capital Wealth Solutions LTAF has been designed as an open-ended investment company, enabling it to be made available to the UK wealth market.
Read more: LTAFs look to diversify private markets exposure with multi-asset focus
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 more than $1.8bn (£1.3bn).
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 focus on technology and healthcare sectors.
Read more: Phoenix Group and Schroders launch £20bn private market investment scheme
“This is a significant step forward,” said Schroders private markets director James Lowe. “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.”
Alt added: “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.”
Earlier this month, the firm received approval for the first LTAF dedicated to UK venture capital. This will be Schroders’ fourth LTAF, having launched the UK’s first in April 2023.
Read more: Fidelity approved to launch first LTAF
