Schroders Capital, the $97.3 billion specialist private markets business, today announces the completion of the first £500m close of the UK Innovation LTAF (‘LTAF’, ‘the Fund’). The first of its kind LTAF has also completed two investments into UK AI companies Synthesia and Luminance.
At first close, the Fund has raised commitments from investors, including the British Business Bank and Phoenix, via its private markets venture with Schroders - Future Growth Capital. The successful close is indicative of the desire from DC pension schemes and other institutional investors to participate in the growth and development of UK early-stage companies.
The LTAF close coincides with a period of significant technological advancements in AI within the UK, and marks a pivotal moment for growth in UK venture. The strategy is concentrated on fostering the growth of groundbreaking UK early-stage companies, with a particular emphasis on technology and life sciences, in line with the UK’s Long-Term Investment for Technology and Science (LIFTS) initiative.
The Fund invests in key global innovation themes including artificial intelligence, cybersecurity, fintech & payments, consumer, infrastructure software, vertical SaaS, oncology and biotech discovery platforms. The Fund has already deployed capital and examples of investment into these themes include the strategy's first two investments. In January 2025, the LTAF invested in Synthesia, the world’s leading enterprise AI-powered video communications platform, and this month completed an investment in Luminance, a pioneer in Legal-Grade™ AI.
The investment in Synthesia will fuel the firm’s next phase of growth, supporting product and talent growth, and drive the expansion of its innovative AI-powered video platform to meet the evolving needs of enterprises in several markets, including Japan, Australia, Europe and North America. This was an extension of Schroders Capital’s long-standing partnership with Synthesia through its co-investment partner, MMC Ventures.
For Luminance, the funding will provide resources for further innovation out of the company’s Cambridge R&D hub, as well as expansion with new hires and offices across the US, APAC and Europe.
The Fund is managed by Schroders Capital's Tim Creed, Head of Private Equity Investments, and Harry Raikes, Investment Director.
Tim Creed, Head of Private Equity Investments, Schroders Capital said:
“The UK remains a hub for European innovation. We are pleased to complete our first close with a strategy dedicated to nurturing this vibrant innovation landscape. This milestone underscores the interest from pension schemes, reflecting the need for strategies that drive forward-thinking investments. Early-stage UK businesses are at the forefront of driving groundbreaking advancements not only in technology, but in a huge range of sectors. Now more than ever, they will play a crucial role in shaping the future of the UK economy.”
Harry Raikes, Private Equity Investment Director, Schroders Capital added:
“Our first two investments showcase our conviction in the UK and AI. We are thrilled to invest in Synthesia, a pioneering force in AI-powered communication. Its innovative platform is set to revolutionise content creation and enhance organisational communication across the globe. We are also pleased to back Luminance, a global leader in legal AI for enterprise, as we support the growth of this market in the UK.
“Both firms hold an impressive customer base that includes Fortune 100 companies, demonstrating the wider markets conviction in these innovative businesses.”
Paul Forshaw, CEO of Future Growth Capital, said:
“We’re delighted to be a founder investor in the UK Innovation Fund, helping to grow the UK businesses of the future on behalf of UK pension savers.”
Schroders Capital’s private equity team has a longstanding and successful track record in venture capital investing with almost three decades of early-stage technology and healthcare investment experience.
The firm is already a market leader in offering structures which provide greater access to private assets through its range of listed vehicles, as well as semi-liquid and illiquid structures.
Long-Term Asset Funds (LTAFs), a fund regime authorised by the UK’s Financial Conduct Authority, are vehicles designed to enable UK pension scheme investors with longer-term horizons to invest in more illiquid assets, that they haven’t historically had access to.
ENDS
For further information, please contact:
Rachael Dowers, Media Relations Lead, Private Markets | +44 207 658 2086 | |
Jessye Brandon, PR Manager | +44 20 7658 5186 |
Note to Editors
To view the latest press releases from Schroders visit: Media Centre | Schroders global
Schroders Capital
Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $97.3 billion (£77.0 billion; €90.8 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2024 (including non-fee earning dry powder and in-house cross holdings)
Schroders plc
Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £773.7 billion (€912.6 billion; $978.1 billion) of assets under management at 30 June 2024. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital.
Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.
Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.
The fund is an authorised unit trust. Subscriptions for fund units can only be made on the basis of its latest Key Investor Information Document, Supplementary Information Document and Prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies are available in English and can be obtained, free of charge, from Schroder Unit Trusts Limited. These can be requested via out website at www.schroders.co.uk, or by calling the Investor Services Team on 0800 182 2399 requesting a printed version. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Past Performance is not a guide to future performance and may not be repeated. 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. Exchange rate changes may cause the value of investments to fall as well as rise. Schroders has expressed its own views and opinions in this document and these may change. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. The data contained in this document has been sourced by Schroders and should be independently verified. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither Schroders, nor the data provider, will have any liability in connection with the third-party data. We recommend you seek financial advice from an Independent Adviser before making an investment decision. If you don't already have an Adviser, you can find one at www.unbiased.co.uk or www.vouchedfor.co.uk Before investing in an Investment Trust, refer to the prospectus, the latest Key Information Document (KID) and Key Features Document (KFD) at www.schroders.co.uk/investor or on request.
Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.