Schroders Capital, the $97.3bn specialist private markets business of Schroders Group, has received regulatory approval from the UK’s Financial Conduct Authority to launch its third Long-Term Asset Fund (LTAF) and the first dedicated to UK venture capital.
The newly-approved LTAF will offer defined contribution (DC) and other institutional investors the opportunity to participate in the growth and development of UK early-stage companies focused on technology and life sciences.
LTAFs are vehicles designed to enable UK investors with longer-term horizons to invest in more illiquid assets, allowing them to take advantage of the robust returns and diversification benefits of private markets.
Schroders Capital will invest across companies that are pioneering the development of long-term innovation themes such as artificial intelligence, quantum computing, fintech, cybersecurity and oncology.
The fund will be seeded with a cornerstone investment of £300m. The British Business Bank is also making a commitment of £150m, as part of the UK Government’s Long-term Investment for Technology and Science (LIFTS) initiative.
Tim Creed, head of private equity investments, Schroders Capital, said: “The UK is the largest venture capital market in Europe and a key global innovation hub.
“This fund will allow a broader range of investors to benefit from the next technology revolution and access innovative companies driving long-term megatrends.
“With the UK being home to a growing number of unicorns and our ability to invest through the full lifecycle, we can tap into the best companies with high growth potential on behalf of our investors.”
