Schroders Capital, the leading $97.3 billion private markets business of Schroders Group, today announces it has been awarded a £2 billion real estate mandate by the Wales Pension Partnership (WPP), a collaboration of the eight LGPS funds in Wales and one of eight Local Government Pension pools.
This mandate win builds on the £500 million mandate awarded by WPP to Schroders Capital last year to invest in global private equity.
Today’s news will see Schroders Capital’s real estate team deploy up to £400 million in positive impact and local investments across Wales, including local employment generating opportunities, affordable housing and healthcare. The mandate will also target impact opportunities across the UK which deliver positive social impact and decarbonisation strategies that support WPP’s net zero ambitions.
The remainder of the mandate will be invested in UK core real estate focused on the industrial, retail and office sectors, as well as specialist and operational real estate such as hotels, self-storage and student accommodation. The commitment by WPP further demonstrates Schroders’ ability to work in strong partnership with clients and provide access to a broad spectrum of real estate investment opportunities alongside its leading impact capabilities.
With £22.1 billion in global assets under management[1], Schroders Capital’s Real Estate team aims to offer tailored investment and asset management solutions to its clients and partners, delivering long-term sustainable performance through operational excellence with a hospitality-led approach.
Sophie van Oosterom, Global Head of Real Estate, Schroders Capital, said:
“We are very pleased to further strengthen our partnership with WPP. Our clients and investors are increasingly demanding more from their real estate exposure and managers – they want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value. We are committed and well positioned to meeting these advanced challenges and our partnership with WPP is testament to the strength of our proposition.”
Paul Myles, Head of LGPS Business Development, Schroders, said:
“We look forward to working with WPP on this second private markets mandate, further building on our partnership. We are committed to delivering relevant and comprehensive investment solutions which meet the increasingly complex needs of our sophisticated clients, both from a philosophical investment perspective but, crucially, in terms of their financial returns and impact targets.”
Cllr Elwyn Williams, Chair of the Joint Governance Committee, WPP, said:
“The appointment of Schroders Capital concludes the majority of the private markets investment managers for WPP. Real Estate is a core asset class for the eight Welsh Constituent Authorities and Schroders Capital will help provide the investment they need to meet their local strategic asset allocations.”
[1] As at 30 June 2024
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Schroders Capital
Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $97.3 billion (£77.0 billion; €90.8 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2024 (including non-fee earning dry powder and in-house cross holdings)
Schroders plc
Schroders is a global investment management firm with £773.7 billion (€912.6 billion; $978.1 billion) assets under management, as at 30 June 2024. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core businesses; Public Markets, Solutions, Wealth Management and our private markets business Schroders Capital. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.
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