Private Equity
We provide investors with access to attractive private equity segments globally150+ Direct and co-investments
Aiming to generate strong returns across economic cycles
We provide investors with access to a broad range of private equity investment opportunities across buyout and growth investments, as well as for venture capital with a focus on what we consider the most attractive parts of the global private equity market.
We have over 20 years of private equity investment experience, generating strong returns via transformational business ownership through multiple economic cycles. With a local servicing model and a dedicated client solutions team, our investors regard us as a long-term, trusted global partner.
Our private equity business was previously known as Schroder Adveq.
The number of investments closed is as of Q4 2020.
Providing investors with access to a broad range of strategies and return profiles
We provide our clients with exposure to attractive private equity investments in Europe, the US and Asia through direct, co-investment, secondaries and primary investments. In addition, we have capabilities in impact investing in frontier markets through Blue Orchard.
We focus on what we consider the most attractive sectors:
Delivering value through transformational change
We focus on fundamental value generation through active ownership.
Buy-and-build – We help small and mid-sized companies to expand through accelerating their organic and inorganic growth. We use a range of value creation drivers to capitalise on long-term market trends.
Growth investments – We provide the capital to support the geographic expansion and product line extension of fast-growing companies by leveraging our global network and our expertise in investing in innovative businesses.
Company creation and innovation – Through our direct, co-investment and primary investments, we often provide the first institutional capital for companies, helping founder-owned businesses on their path to create new markets and become market leaders.
Private equity investments our stakeholders can be proud of
ESG is deeply rooted in Schroders Capital strategy. Schroder Adveq was an early signatory and Schroders Capital continues to take pride in being an early signatory to the UN PRI and holding an A+ rating. Our forward-looking, proprietary ESG analysis helps us to understand the challenges and opportunities of environmental and social change and identify sustainably managed businesses. We believe that by integrating ESG considerations into our investment process, we can deliver better outcomes for clients and society as a whole.
Our leadership
With strong local footprints across the globe, our investors trust us to source what we consider the most sought-after investment opportunities.
Key Investment Risks
Volatility risk: The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Liquidity risk: There may be very limited liquidity available via the secondary market of the proposed Fund given the underlying private credit assets and investors should consider an investment only if they intend to hold it for the life of the proposed Fund. Liquidity of the underlying investments might not be sufficient to meet investor subscription and redemption requirements.
Interest rate risk: A rise in interest rates generally causes bond prices to fall.
Credit risk of underlying issuers/lenders: A decline in the financial health of an issuer/lender can cause the value of its bonds/ loans to fall or become worthless.
Currency risk: The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.
Counterparty risk: The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the proposed fund, potentially creating a partial or total loss for the proposed fund.
Derivatives risk: A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
Concentration risk: The proposed Fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund.
Gearing risk: The proposed fund may borrow money to invest in further investments. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.
Valuation risk: The underlying private credit assets may be subject to inadequate pricing reliability. In addition, property-based vehicles invest in real property, the value of which is generally a matter of a valuer’s opinion.
Industry/country risk: Legislative changes, changes in general economic conditions and increased competitive forces may affect the value of investments. Additional risks may include greater social and political uncertainty and instability and natural disasters.
Infrastructure asset risk: Infrastructure assets expose investors to additional risks, in particular construction risk (e.g. construction delays, cost overruns, etc.) and deployment risk (e.g. capital being deployed in several instalments during construction period rather than upfront for brownfield investments).