BNP Paribas’ Securities Services has been appointed by asset manager Schroders to provide asset servicing for the launch of two new UK Qualifying Asset Holding Company (QAHC) fund structures.
The mandate came on behalf of Future Growth Capital (FGC), a private markets venture created by Phoenix Group and Schroders to drive greater UK pension participation in long-term private market investments. As part of the agreement, BNP Paribas will deliver fund administration, global custody and loan administration services.
The bank’s Securities Services division currently oversees $15.4 trillion in assets under custody and $860 billion in private assets under service.FGC, formed in 2024, represents a strategic alliance between long-term savings and retirement provider Phoenix Group and Schroders. FGC intends to deploy between £10 billion and £20 billion over the next decade across a diversified range of private market strategies, including private equity, venture capital, infrastructure, real assets and private debt.
The QAHC structure, introduced by the UK government to increase the competitiveness of the UK as a holding company jurisdiction, offers tax advantages and operational efficiency for private market investment vehicles. By leveraging BNP Paribas’ integrated banking model, FGC will gain access to a suite of fund services, from asset safekeeping and regulatory compliance to loan administration, backed by global capabilities and deep on-the-ground expertise in the UK market.
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James Harvey, CFO and COO, FGC, commented: “We are delighted to have completed the setup of the QAHC structures, with the support from BNP Paribas’ Securities Services team. We are now in a position to execute private markets investments within the UK market, a key pillar of our business alongside providing access to global opportunities. We see a depth of opportunity in the UK private markets, to which UK pension schemes are underallocated, and we are excited about the opportunity we have to enhance pension outcomes while also investing much-needed capital here in the UK.”
Peter Arnold, COO, Schroders Capital, added: “Together with BNP Paribas and FGC, we have demonstrated great collaboration in the successful launch of the QAHC structures. As we continue our path together, we aim to build out the partnership with BNP. My congratulations go to the whole project team.”
Julien Kasparian, Regional Head for the United Kingdom and Middle East, Securities Services, BNP Paribas, commented: “BNP Paribas has been investing heavily in the private capital space as we see a growing demand for sophisticated innovations and dedicated local services. This mandate is an extension of our longstanding partnership with Schroders, demonstrating an ideal fit between their strategic needs and BNP Paribas’ global offering. It also highlights our continued efforts to support new and emerging fund structures in key markets. We look forward to supporting FGC in delivering on this important agenda for the UK pension market.”
