Schroders Capital delivers €1bn in distributions from European Buyout and Growth strategy in 2024 resulting in a distribution rate of 17%
Schroders Capital, the $99.3 billion private markets business of Schroders, has achieved €1bn in distributions from private equity investments in European buyout and growth over the course of 2024. This achievement represents a distribution rate[1] of 17% relative to the net asset value (NAV) of European investments as of 1 January 2024.
In a challenging exit environment, this milestone underscores the strength and robustness of Schroders Capital's European Buyout and Growth investment strategy. While the distribution rates across private equity generally hover around 10%[2], Schroders Capital has surpassed this benchmark, showcasing the effectiveness of its private equity investment approach and the benefits of its strategic focus on the lower mid-market.
European private equity has the potential for highly attractive returns, driven by a fragmented market that enables consolidation opportunities and access to some of the fastest-growing segments of the EU economy - opportunities not typically available through listed equities. Focusing on the lower mid-market, Schroders Capital seeks opportunities in companies that are typically founder-owned, have conservative leverage, and present attractive entry valuations. These investments often represent the first instance of private equity ownership for such firms, bringing new capital to support growth and operational improvements.
Schroders Capital has continued its strategic focus on the European lower mid-market. A notable investment includes supporting Sabseg Group, a leading independent insurance broker in Iberia, with the backing of Miura Partners. This collaboration enables Sabseg Group to acquire similar brokers within its niche and geographic focus with a specialisation in corporate and SME insurance. By leveraging its resources, expertise, and product knowledge, Sabseg Group is driving robust business growth. This successful expansion has already resulted in a significant upvaluation for investors.
Furthermore, exit opportunities remain robust with strategic acquirers and large buyout funds providing alternative strategies beyond the constraints of the IPO market. This point is evidenced by the top 10 exits from Schroders Capital’s European portfolio in 2024, which produced an average multiple of invested capital of 9.1x.[3]
Operating with diversified teams across strategic locations, Schroders Capital benefits from a global reach. Its extensive portfolio, rich in diverse investment opportunities, spans multiple regions, enhancing its appeal to investors[4].
Richard Damming, Head of European Private Equity Investments at Schroders Capital, said:
"I am immensely proud of our team's achievements in the past year. Our strategic focus on the lower mid-market has enabled us to not only achieve robust financial returns but also make significant distributions to our investors. We remain committed to leveraging our expertise and global reach to identify and capitalise on new opportunities for our investors and stakeholders, including investments in access restricted buyout and growth opportunities within Europe."
A recent study by Schroders Capital highlighted the proven track record of private equity to outperform during downturns: the lower mid-market segment in particular. The analysis highlighted that private equity has historically demonstrated resilience and superior performance during the greatest market disruptions of the last 25 years, presenting the sector’s potential as a robust component of investment portfolios, especially during periods of economic uncertainty.
For further information, please contact:
Rachael Dowers, Media Relations Lead, Private Markets | +44 207 658 2086 | |
Jessye Brandon, PR Manager | +44 207 658 3789 |
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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 $99.3 billion (£79.3 billion; €95.9 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 31 December 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 £778.7 billion (€941.8 billion; $975.3 billion) of assets under management at 31 December 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.
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.
[1] The ratio of distributions from investments over 2024 divided by the valuation of investments as of 01.01.2024
[2] As of Q2 2024 (latest data available for the market)
[3] Past performance is not a guide to future performance and may not be repeated.[3]
[4] Diversification cannot ensure profits or protect against the loss of principal.