Long-Term Asset Funds (LTAFs)

LTAFs are specifically designed to facilitate investment in long-term, less liquid assets while, at the same time, providing an appropriate level of investor protection.

They are permitted to invest in a wide range of assets, including venture capital, private equity, private debt, real estate and infrastructure.

LTAFs were established as a vehicle primarily with defined contribution (DC) workplace pensions in mind and could initially only be marketed to professional investors and restricted categories of retail clients (sophisticated and high net worth). However, following publication of the FCA’s PS23/7, from 3 July 2023 LTAFs can be marketed (as Restricted Mass Market Investments or ‘RMMIs’) to a far wider range of retail clients.

At Simmons & Simmons, we see the LTAF as a positive move towards developing a suitable regime which enables much broader access to long-term and productive capital vehicles in the UK.

We were the only law firm represented on the Bank of England / HMT / FCA Productive Finance Working Group which has been central to the development of the LTAF and for which we produced an LTAF model co-ownership deed for ACS and an LTAF model instrument of incorporation for ICVC in October 2024.

We have been actively engaging with our major asset manager clients on the development of the LTAF as well as working closely with a number of trade associations (the Investment Association, AIMA, ACC and BVCA) in this area.

We are also proud to have advised Schroders Capital on the authorisation of the first ever LTAF and soon after on their second LTAF.

If you have any questions about LTAFs, please contact any member of our team.