Schroders launches British Opportunities Trust to invest in future business growth

Schroders today announces its intention to launch the Schroder British Opportunities Trust plc, a new investment trust focused on investing in the future growth of British Business, both public and private, while supporting UK employment through the pandemic and beyond.

With further restrictions announced in the UK within the last 24 hours, British businesses will need funding now more than ever to ensure their growth through this pandemic and beyond. The Schroder British Opportunities Trust plc will be launched in response to the current challenging market conditions.

The Trust seeks to invest in high-quality, small and mid-sized UK companies with sustainable business models. These companies may require additional equity either to maximise their growth potential or to return them to their previous growth trajectory.

In anticipation, Schroders is seeking to raise £250 million, via an initial public offering, to invest in a proactive public and private equity investment strategy, which aims to provide long-term total returns.

Through active engagement, the Schroders investment team will promote a long-term focus on sustainability from investee companies by encouraging incorporation of the UN Sustainable Development Goals (SDGs) into their business planning, the adoption of best ESG practices and disciplined capital allocation.

The investment team is led by two of Schroders’ senior investors with strong performance track-records, Rory Bateman, Head of Equities and Tim Creed, Head of UK and European Private Equity.

Rory Bateman, Head of Equities, commented:

"This is a once-in-a-generation opportunity to invest in the future of British business and produce substantial returns while making a positive impact.

“The companies that require funding are often too large to be the focus of government initiatives, but too small to have the necessary impact with banks or credit markets. The current level of UK government debt-driven support is unsustainable and as support comes to an end, we believe many high-quality UK growth businesses will require an injection of ‘fresh’ equity to grow and succeed through the pandemic and beyond.”

 Tim Creed, Head of  UK and European Private Equity, commented:

“At Schroders, we have a long heritage of investing in both UK public equity and UK private assets. In managing the Schroder British Opportunities trust, we will leverage our full public and private equity capabilities, capitalising on our investment trust expertise and our considerable experience of managing hybrid public and private equity strategies.”