Private Assets Solutions
A client-focused approach to private asset mandatesIntegrating private assets into a client’s portfolio
Schroders Capital helps investors to seamlessly manage the integration of private assets into their investment portfolios.
We empower investors to reach their objectives for private asset mandates, supporting them with investment management, structuring and the administration process. Our dedicated multi-disciplinary mandate account team serves to seamlessly integrate and collaborate with our clients’ in-house teams.
All mandate solutions are tailored to a client’s individual requirements in terms of scope, return objectives, sustainability criteria or non-financial impact goals, risk budget, diversification needs, liquidity preferences and other important aspects.
We support clients with a broad range of mandate solutions:
- From single asset class to multi private asset mandates, to mandates combining private-asset investments with listed investments
- Focusing on a specific strategy, industry or investment type or a combination
- From non-discretionary to fully discretionary mandates
- From focused investment management services to one-stop solutions, including all aspects of a private-asset portfolio build-up and management
Long-standing experience in serving private asset clients
Our private asset solutions capabilities are deeply ingrained across Schroders Capital. We provide mandate solutions to different types of clients including pension funds, insurance companies, endowments and family offices.
A client-focused, modular approach to private asset mandates
A client-focused approach
Each mandate solution is driven by the client’s needs and combines a number of modular building blocks along the investment management and investment administration processes
Close collaboration
The level of collaboration is defined by the clients’ preferences and available resources. Some clients work with us in such a close way that they see us as an extended workbench, supporting them with multiple aspects of their private asset investments. Open and transparent knowledge sharing is a key pillar of our mandate philosophy
A full spectrum of investment building blocks
The broad range of asset classes and investment strategies that we cover allows us to provide specialised solutions as building blocks for a client’s portfolio or to provide one-stop solutions covering a range of asset classes and strategies
Dedicated service capabilities
Schroders Capital’s dedicated solution team supports clients with aspects that go beyond investment advice and portfolio management, and can include topics such as allocation considerations, portfolio modelling, risk modelling and FX hedging
Dedicated client account team
Our dedicated, multi-disciplinary mandate account teams make sure the services are tailored to each client’s needs and preferences. They also provide our clients with direct access to the respective experts within Schroders Capital and involve the client in the mandate process according to its preferences
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).