Schroders Capital UK Innovation LTAF
Investing in transformational UK technology and life sciences
Attractive return potential
Our strategy aims to capture early-stage growth opportunities.
Access to innovative UK companies
Harnessing trusted partnerships with access-restricted venture funds.
Increased liquidity
Offering long-term UK savers access to private asset investments through an open-ended LTAF structure.
A venture capital fund focused on UK technology and life sciences
Schroders Capital UK Innovation LTAF will invest in innovative UK life science and technology companies that are seeking venture and growth capital. The majority of this capital will be invested into companies that are in their ‘scale-up’ funding rounds.
The Fund targets early-stage companies that closely align with eight key innovation themes: artificial intelligence, cybersecurity, fintech & payments, consumer, infrastructure software, vertical SaaS, oncology and biotech discovery platforms.
Why now for UK venture capital?
The UK is Europe's largest venture capital market and a global innovation hub. It is home to many innovative, fast-growing early-stage companies supported by top research institutions and universities. In the past decade, the number of UK private companies valued at over $1 billion has grown from a few to more than 50. These companies have provided significant returns for early investors.
Pioneering investment vehicle
Schroders Capital UK Innovation LTAF represents the first investment structure of its kind for UK venture capital.
Long-Term Asset Funds (LTAFs) are vehicles designed to enable UK pension scheme investors with longer-term horizons to invest in more illiquid assets, allowing them to take advantage of the robust returns and diversification benefits of private markets.
"UK savers will be able to benefit from the potential returns and investment diversification that these innovative sectors can provide, whilst also backing homegrown businesses."
Head of UK Institutional Defined Contribution
Contact our team
Find out more by contacting your Schroders representative.
Schroders Capital
We back the world’s most innovative and disruptive businesses, with early and growth-stage investments that will support their development. Our deep network and experience yields exceptional deal flow, and we have demonstrated our ability to deliver consistent performance.
Key Investment Risks
Commitment funding risk: The fund will have an investor commitment/draw-down funding model which exposes the investment vehicle to the credit risk of its investors. If an investor fails to comply with a drawdown notice, the investment vehicle may be unable to pay its obligations when due.
Concentration risk : The fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down.
Currency risk: The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.
Interest rate risk: The fund may lose value as a direct result of interest rate changes.
Liquidity risk: The fund invests in illiquid instruments which are harder to sell. Illiquidity increases the risks that the fund will be unable to sell its holdings in a timely manner in order to meet its financial obligations at a given point in time. It may also mean that there could be delays in investing committed capital into the asset class.
Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
Private Equity risk: Private equity strategies are subject to a variety of risk conditions, including, but not limited to, the risk that too much is paid for acquiring a business, new or unproven management, new or less mature business strategies or unsuccessful integration with existing businesses.
Tax risk: The Fund and its returns may rely on certain available tax efficiencies at the inception of the Fund which may be subject to changes in tax treatment or interpretations. Any change in the actual or perceived tax status or exposure of the Fund or its investments as well as in tax legislation, practice or in accounting standards could adversely affect the anticipated level of taxation.
Valuation risk: The valuation of private asset investments is performed on a less frequent basis than listed securities. In addition, it may be difficult to find appropriate pricing references for private asset investments. This difficulty may have an impact on the valuation of the portfolio of investments. Certain investments are valued on the basis of estimated prices and therefore subject to potentially greater pricing uncertainties than listed securities.