Schroders Capital has chosen Brown Brothers Harriman (BBH) to act as central administrator and depositary bank for the launch of its first European Long-Term Investment Fund (Eltif).
The Luxembourg branch of the service provider will support the launch of the UK asset manager’s first Eltif, which has been gaining in popularity with retail investors more recently.
Eltifs were introduced by the EU in 2015 to help improve financing of European companies and projects in need of long-term financing but without access to public capital markets.
In recent years, BBH has developed a client service model and technology platform across all private market strategies allowing managers to add asset classes and products without disrupting their business.
The BBH offering allows clients to streamline operations by relying on a single source that supports the valuation of their private and public assets, cash positions and accounting data.
Lata Vyas, head of product for alternative funds at BBH, said: “We’ve worked with many clients to build an efficient operating model that provides an integrated funds servicing experience.
“Our streamlined technology platform means we’re able to support private and public markets on a single platform.”
Peter Arnold, chief operating officer at Schroders Capital, added: “We believe that a wider range of investors should have access to the opportunities that private assets can offer.
“BBH’s ability to support our democratisation journey across public and private strategies has been a key differentiator in our efforts to expand access.”
This year, Schroders Capital has launched two Long-Term Asset Funds (Ltafs), the UK equivalent of the Eltif, aimed at supporting the transition to a net zero economy.
Earlier this year, BlackRock’s Emea head of alternative specialists wealth West Lockhart told Funds Europe that the number of Eltifs will likely triple in the next few years as Eltifs 2.0 – permitting greater participation by retail investors – gets the go-ahead for launch in January 2024.
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