Future Growth Capital (FGC), the new private markets investment manager announced by Schroders plc and Phoenix Group in July, today announces that regulatory approval has been granted for the first UK dedicated multi-asset Long-Term Asset Fund (LTAF) to be entirely aligned with the Mansion House Compact. It comes alongside approval for a second, global LTAF.
These mark a significant milestone as the firm focuses on unlocking investment opportunities for millions of pension savers to benefit from the diversification and investment return opportunities that unlisted assets can offer.
LTAFs, a fund regime authorised by the UK’s Financial Conduct Authority, are designed to enable UK investors with longer-term horizons to invest in illiquid assets. The two newly approved LTAFs are the Schroders “Future Growth Capital” UK Private Assets LTAF and the Schroders “Future Growth Capital” Global Private Assets LTAF.
The UK LTAF is the first multi-asset LTAF to be dedicated to the UK market. It aims to invest across a wide range of UK private markets assets to generate potentially higher returns, while also supporting the growth of some of the country’s most exciting businesses. The global LTAF is intended to provide diversified exposure across a broad spectrum of international investment opportunities in private markets.
With significant appetite to invest in UK private markets, FGC will also seek to promote the UK’s private markets ecosystem, further enhancing the UK as an attractive destination for international investors.
Paul Forshaw, Chief Executive, Future Growth Capital, said:
“This is a significant step forward for our new business and for UK pension capital. The Schroders “Future Growth Capital” UK Private Assets LTAF will be the first LTAF entirely aligned with the Mansion House Compact, connecting long-term savings directly to the most attractive private UK companies, supporting these exciting businesses to grow and stay in the UK.
“The Schroders “Future Growth Capital” Global Private Assets LTAF will provide long-term savers with the benefits of further diversification across the spectrum of international private assets. Importantly, both LTAFs have the potential to deliver better long-term retirement performance.”
FGC is a new private markets investment manager established by Schroders, the global investment manager with a $97.3 billion (£77.0 billion; €90.8 billion) private market capability, and Phoenix Group, the UK’s largest long-term savings and retirement business with 12 million customers.
Subject to all necessary regulatory approvals, FGC aims to deploy an initial £1bn as part of a planned £10-20bn deployment over the next decade into UK and global private markets. Phoenix Group plans to invest 5% of its relevant savings products on behalf of its policyholders, in line with its Mansion House Compact commitment. Ongoing fundraising will be led by both Schroders and Phoenix Group.
FGC is initially leveraging Schroders Capital’s pioneering LTAF investment platform. Schroders Capital is already a market leader in offering structures which provide greater access to private assets through its range of listed vehicles, as well as semi-liquid and illiquid structures. This will be the fifth LTAF on Schroders Capital’s platform, having launched the UK’s first in April 2023. Last month, they also announced another market first after receiving approval for the first LTAF dedicated to UK venture capital and the first UK Wealth LTAF.
