Future Growth Capital launches two LTAFs
Future Growth Capital (FGC), the private markets investment business set up by Phoenix Group and Schroders last year, has launched two new long-term asset funds (LTAFs).
One fund will have a global strategy and the other will have a complementary UK strategy. Both will offer actively-managed, diversified private markets exposure to private equity and venture capital, real assets and private debt, targeting a 10 per cent investment return after fees per annum.
LTAFs are a structure designed to encourage individuals to invest in long-term assets, including private debt. FGC’s two LTAFs were approved by the Financial Conduct Authority in October 2024.
‘’We’re excited to be launching these two strategies, designed to unlock private market investments for UK pension savers, efficiently and cost-effectively,” said Paul Forshaw, chief executive of FGC.
“By offering complementary global and UK LTAFs side by side we are giving investors the option to decide exactly what their UK and global private markets exposures should be, at a time when investment allocations to the UK are increasingly in focus.”
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The global LTAF will provide exposure to assets from private markets in the US, Europe and Asia.
Meanwhile, the UK LTAF focuses on the investment opportunities available in UK private enterprise and UK development projects. It offers investors an efficient way to balance and diversify their public market portfolios now that 36 per cent of the UK’s 500 largest companies are privately held, FGC said.
It also offers investors the opportunity to participate in the UK’s energy transition, with the firm highlighting that £900bn of investment in energy infrastructure is needed for the UK to meet its energy transition goals.
“Private markets are essential building blocks to deliver better pension outcomes,” said Ped Phrompechrut, chief investment officer of FGC.
“Often overlooked is that UK private markets are broader and deeper than many recognise and offer a rich seam of investment return potential. The UK is a hub of innovation, the third largest venture capital market in the world, and the leading supplier of unicorn businesses in Europe. There are great investment opportunities for investors, and we aim to capture these for UK pension savers, alongside providing access to a global strategy.’’
FGC is a new private markets investment business established by Phoenix Group, the UK’s largest long-term savings and retirement business with 12 million customers and Schroders, the global investment manager with a £79.3bn private markets capability.
It aims to deploy £10-20bn over the next decade into private markets, in support of the government’s Mansion House objectives, to boost retirement savings for UK pension savers while unlocking long-term finance to fuel UK growth.
Phoenix Group intends to invest five per cent of its relevant savings products on behalf of its policyholders via investment products managed or advised by FGC, in line with its Mansion House Compact commitment.
