Future Growth Capital (FGC), the private markets investment manager established by Schroders and Phoenix Group, has secured regulatory approval for the UK’s first dedicated multi-asset Long-Term Asset Fund (LTAF), aligned with the Mansion House Compact.
In addition to this, FGC has also received approval for a second global LTAF. The purpose of these approvals is to give pension savers access to unlisted assets.
The UK LTAF will focus on a diverse range of private market assets to support business growth and generate returns, while the global LTAF will provide diversified exposure across a broad spectrum of international investment opportunities in private markets. FGC also wants to promote the UK’s private markets ecosystem.
Schroders and Phoenix Group launched FGC, which intends to invest an initial £1 billion in the UK and international private markets, with the objective of investing £10–20 billion over the next ten years, pending regulatory permission. Phoenix Group has committed to allocating 5 per cent of its savings products to the Mansion House Compact.
Schroders Capital’s LTAF investing platform, known for offering more access to private assets and has introduced several structures—including the first LTAF for venture capital in the UK—will be used by FGC.
Future Growth Capital chief executive Paul Forshaw says: “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.”