International law firm Simmons & Simmons is advising Schroders on its latest Long-Term Asset Funds (LTAFs), which are being established to support its new private markets partnership with Phoenix Group, Future Growth Capital (FGC).
Schroders, the global investment manager with a £74bn private market capability, announced last month that it has agreed to launch a new private markets investment manager with Phoenix Group, the UK’s largest long-term savings and retirement business.
Welcomed by the Chancellor of the Exchequer, FGC will aim to deploy £10-20bn of investor funds into private markets over the next decade.
Subject to regulatory approval, the new investment manager will design and manage UK and Global multi-private asset solutions for UK insurance and pension clients, opening investment access to a broader range of private markets investments for millions of UK pension savers.
It hopes to achieve the dual objectives of delivering higher long-term investment returns for pension savers and supporting UK businesses to grow.
Initially FGC will leverage Schroders’ pioneering Long-Term Asset Fund (LTAF) investment platform, providing investment advice to the fourth and fifth LTAFs planned for launch by Schroders’ dedicated private markets business, Schroders Capital, in the UK.
Simmons is advising Schroders on the fourth and fifth LTAFs that will be leveraged by the venture. LTAFs are a pioneering category of open-ended authorised fund – designed to facilitate investment in long-term, less liquid assets.
Simmons previously advised Schroders on the first ever LTAF, launched in 2023, in what was a milestone for the UK funds industry. This was followed by support for its second LTAF in the same year.
Simmons' Regulated Funds Group is advising Schroders on the new LTAFs - with a team led by partner John Dooley, supported by Supervising Associate Dom Buxton and Associate Saul Melvin-Farr.
Commenting on the firm’s support for Schroders, John Dooley said: “We congratulate Schroders on the announcement of this partnership, which will prove transformational for opening up access to private markets for defined contribution pension funds. Schroders’ innovative LTAF platform will play a central role in the venture’s operation and success – we’re very pleased to continue to leverage our market leading expertise on launching LTAFs to advise Schroders on this crucial component.”
David Williams, Head of Investment Funds and Schroders relationship partner added: “The Future Growth Capital initiative is a hugely important development, building on the objectives of the Mansion House Compact and delivering the possibility of higher returns for long-term pension savers. It is a really exciting project and, as the market-leading firm in the LTAF space, we are proud to have the opportunity to play a role in its creation”.