Future Growth Capital announces milestone launch of Global and UK LTAFs and first investment
• Future Growth Capital (FGC) announces the launch of two new Long Term Asset Funds, investing in both Global and UK private markets.
• The FGC Global LTAF offers access to a diversified portfolio of global private market investments.
• The UK Private Assets LTAF is the first to offer access to a diversified blend of assets focused on UK private market investments.
• Investors can allocate to the two LTAFs to meet their desired UK / non-UK exposures.
• The UK LTAF has made a first investment under the UK Government’s Long-Term Investment for Technology and Science (LIFTS) initiative, which aims to support the growth and ambitions of the UK’s most innovative science and technology companies.
Future Growth Capital (FGC), the new private markets investment business announced by Phoenix Group and Schroders plc, today announces the launch of two diversified private markets Long-Term Asset Funds (LTAFs), a global strategy and a complementary UK strategy.
Both the global and UK strategies offer actively-managed, diversified private markets exposure to private equity and venture capital, real assets and private debt, and are designed to deliver long-term performance, targeting a 10% investment return after fees per annum.
The Global LTAF focuses on providing diversified, managed exposure to assets from private markets in the US, Europe and Asia, to capture the extra return potential of global private markets, in a blended strategy aiming to deliver a smoothed long-term risk and return outcome.
The UK LTAF for the first time offers investors the opportunity to take advantage of the strong investment opportunities available in UK private enterprise and UK development projects. It offers investors an efficient way to balance and diversify their public market portfolios now that 36% of the UK’s 500 largest companies are privately held[1]. It also offers investors the opportunity to participate in the UK’s energy transition, for which circa £900bn of investment in energy infrastructure is needed for the UK to meet its energy transition goals2.
Separately, FGC confirms the UK LTAF has made its first investment in line with the aims of the UK Government’s Long-Term Investment for Technology and Science (LIFTS) initiative, emphasising its mission to help grow the great UK businesses of the future, and capture the great investment returns available for UK pension savers, by backing UK technology and life science businesses. The British Business Bank has invested £250m into the LTAF under the initiative.
Paul Forshaw, Chief Executive, Future Growth Capital, said:
‘’We’re excited to be launching these two strategies, designed to unlock private market investments for UK pension savers, efficiently and cost-effectively. By offering complementary Global and UK LTAFs side by side we are giving investors the option to decide exactly what their UK and Global private markets exposures should be, at a time when investment allocations to the UK are increasingly in focus.”
Ped Phrompechrut, Chief Investment Officer, Future Growth Capital, said:
”Private markets are essential building blocks to deliver better pension outcomes. Often overlooked is that UK private markets are broader and deeper than many recognise and offer a rich seam of investment return potential. The UK is a hub of innovation, the third largest venture capital market in the world, and the leading supplier of unicorn businesses in Europe. There are great investment opportunities for investors, and we aim to capture these for UK pension savers, alongside providing access to a global strategy.’’
FGC is a new private markets investment business established by Phoenix Group, the UK’s largest long-term savings and retirement business with 12 million customers and Schroders, the global investment manager with a $99.3 billion (£79.3 billion; €95.9 billion) private markets capability*.
FGC aims to deploy £10-20bn over the next decade into private markets, investing globally and in the UK, in support of the Government’s Mansion House objectives, to boost retirement savings for UK pension savers through higher investment returns, and to unlock long term finance to fuel UK growth.
Phoenix Group intends to invest 5% of its relevant savings products on behalf of its policyholders via investment products managed or advised by FGC, in line with its Mansion House Compact
commitment.
LTAFs are a fund regime authorised by the UK’s Financial Conduct Authority designed to enable UK investors with longer-term investment horizons to invest in illiquid assets with the aim of capturing diversification and return benefits. The two LTAFs were approved by the FCA in October 2024.
.* Assets under management as at 31 December 2024 (including non-fee earning dry powder and in-house cross holdings)
[1] Source: Embedding ‘systematic ambition’ to drive UK corporate growth | McKinsey
2 Source: NatWest Energy Transition Report 2023
Enquiries
Anna Perry | Andy Pearce | Dilesh Sangaram |
Proposition Marketing Manager, Future Growth Capital | Head of Media Relations, Schroders | Senior PR Manager, Phoenix Group |
+44 20 7658 8819 | +44 (0)20 7658 2203 | +44 (0)7974 604 323 |
About Future Growth Capital
Future Growth Capital is an independent company, backed by two of the most established names in UK asset management and long-term savings, Schroders plc and Phoenix Group. It aims to unlock investment opportunities in private markets for UK-based Defined Contribution (DC) and other long-term pension fund savers, to support their retirement goals at a time when longer lifespans and low savings rates mean many UK savers are struggling to save enough money for a comfortable retirement.
Future Growth Capital will design and manage multi-private asset solutions to provide diversified, managed exposure to UK and global private market investment opportunities. It is set to deploy a planned £10-20 billion of investor funds into private markets over the next decade, and by connecting savers with UK businesses, it also aims to support the growth of UK businesses and reinforce the UK as an attractive place to invest.
This content is issued by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registration No 4191730 England. Authorised and regulated by the Financial Conduct Authority.
Future Growth Capital is a trading name of Schroder Investment Management Limited. Future Growth Capital Ltd is an investment advisor to Schroder Investment Management Limited who are the investment manager of the Schroders LTAFs. Future Growth Capital has applied for relevant permissions.