Backed with initial investment of £300 million and open to third party investors, the latest LTAF – Schroders’ third to date – will aim to stimulate the UK venture capital ecosystem by mobilising institutional investment into early-stage technology and life science companies, including those specialising in AI, quantum computing, fintech, cybersecurity and oncology.
Pioneered by Schroders, LTAFs are an innovative category of open-ended authorised fund, designed to facilitate investment in long-term, less liquid assets. This new LTAF will provide institutional investors with opportunities to invest into early-stage growth businesses through private markets.
The £300 million initial investment includes £150 million from the British Business Bank, as part of the UK Government’s Long-term Investment for Technology and Science (LIFTS) initiative (subject to contract). This has been matched by the Phoenix Group, the UK’s largest long-term savings and retirement business.
Simmons’ Regulated Funds Group advised Schroders on the latest LTAF – with a team led by partner John Dooley, supported by Supervising Associate Dom Buxton and Associate Saul Melvin-Farr.
Simmons previously advised Schroders on the first ever LTAF in 2023, in what was a major development for the UK funds industry. This was followed by support for the launch of its second LTAF in the same year.
The firm is also advising Schroders on the fourth and fifth LTAFs, which will be leveraged by a recently announced, multi-billion pound venture from Schroders and Phoenix Group, Future Growth Capital.
Commenting on the approval of the latest LTAF, John Dooley said: “This latest LTAF has the potential to deliver significant value to investors whilst providing important support to the UK science and tech industry. It also demonstrates the flexibility of the LTAF structure, being the first LTAF to provide access to venture capital. We’re very pleased to have advised Schroders Capital on its formation, and with securing FCA authorisation. Our market leading team will continue to work closely with Schroders as it seeks to establish more of these pioneering funds.”
Our leading LTAF expertise
Simmons & Simmons is the leading firm advising on Long-Term Asset Funds (LTAFs), with our Regulated Funds team having advised on around 40% of all LTAFs in the market to date.
For further information, visit our LTAFs page.