Schroders launches first UK venture capital LTAF

It is the firm's third LTAF and will offer defined contribution and other institutional investors put money into early-stage companies focused on technology and life sciences.

Investments will include artificial intelligence, quantum computing, fintech, cybersecurity and oncology. 

LTAFs give UK investors longer-term horizons to invest in more illiquid assets.

Tim Creed, head of private equity investments at 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.”

Schroders launched the first LTAF in March 2023. 

The latest fund will be seeded with a cornerstone investment of £300mn.

Earlier this year, the firm announced a partnership with Phoenix which identified institutions capable of invigorating UK life sciences companies and selected Schroders as a partner to commit an amount of £150mn to the fund.

The British Business Bank is also making a commitment of £150mn, as part of the UK government’s Long-term Investment for Technology and Science initiative. 

Tim Horne, head of UK DC at Schroders, said: “Supporting the UK government’s Mansion House reforms, this fund will help unlock the potential for DC schemes to invest into fast-growing, early-stage companies.

"These investors have so far been underweight private markets, venture capital and UK businesses in particular."

He added UK savers will benefit from potential returns and investment diversification the sectors can provide. 

tara.o'connor@ft.com

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