Schroders Capital, the $99.3bn[1] private markets business of Schroders, announces today that its UK Innovation Long-Term Asset Fund (LTAF) has invested in Draig Therapeutics (Draig), a clinical-stage biopharma company aiming to transform the treatment of neuropsychiatric diseases.
The UK is Europe's largest venture capital market and a global innovation hub – home to many innovative, fast-growing early-stage companies[2]. Schroders Capital’s launch of the UK Innovation LTAF last year represented the first investment structure of its kind for UK venture capital, a fund designed to give a broader range of investors access to private markets.
The strategy focuses on fostering the growth of groundbreaking UK early-stage companies, with a particular emphasis on technology and life sciences, investing across key innovation themes such as artificial intelligence, cloud software, fintech, oncology and biopharmaceuticals.
The investment in Draig marks the fund’s first direct biopharma investment following recent investments in AI companies, Synthesia and Luminance. It also builds on the fund’s first £500m close announced earlier this year.
Draig was formed through a partnership between Cardiff University’s Medicine Discovery Institute and SV Health Investors, with founders Professor John Atack, Professor Simon Ward and Ruth McKernan CBE. It has since attracted a world-class leadership team of neuropsychiatric industry specialists highly experienced in developing transformative therapies.
Now an established company with deep biotech and pharma experience, Draig is leveraging its founders’ scientific expertise in modulating neurotransmitters that play a critical role in neuropsychiatric diseases with the aim of advancing a pipeline of therapies designed to address unmet patient needs, including in Major Depressive Disorder (MDD).
Draig is backed by a top tier syndicate of expert biopharma investors, reflecting strong confidence in the company’s impact and innovation. The company has launched having raised $140 million from seed investors SV Health Investors, which co-founded the company, and ICG, as well as an oversubscribed Series A financing, led by Access Biotechnology with several participants including the UK Innovation Fund LTAF.
The new capital raised will help to advance Draig’s innovation within this space, with proceeds funding four clinical studies.
Ruth McKernan, Venture Partner at SV Health Investors, Co-Founder and Executive Chair of Draig, commented:
“Making the best molecules to rebalance brain networks has been John and Simon’s life work. It has been a professional highlight for me to be part of creating this hugely promising company too.”
Harry Raikes, Head of UK Venture Investments, Schroders Capital said:
“We are delighted to complete the UK Innovation LTAF’s first biopharma investment with Draig, an exciting Welsh company developing novel therapeutics for neuropsychiatric diseases. Draig’s research and development track record coupled with its strong pipeline has the potential to deliver meaningful steps for patients in critical need and exemplifies the important innovation the fund is committed to supporting.
“This investment marks an important milestone for the UK Innovation LTAF, both as our initial step into the life sciences sector and as an acceleration of our deployment momentum. We look forward to continuing to back the ‘scale-up’ of critical, early-stage businesses in the UK whilst also unlocking access and value for savers across the country.”
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 biopharma investment experience.
It launched the UK Innovation LTAF last year in response to increasing demand from defined contribution clients, reflecting the team’s market-leading position in launching innovative structures to open-up access for a broader set of clients.[3]
The fund is managed by Schroders Capital's Tim Creed, Head of Private Equity Investments, and Harry Raikes, Head of UK Venture Investments.
[1] Assets under management as at 31 December 2024 (including non-fee earning dry powder and in-house cross holdings)
[2] Schroders Capital UK Innovation LTAF
[3] 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.
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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About Draig Therapeutics
Draig Therapeutics is a clinical-stage company with a mission to transform treatments in Neuropsychiatry. The company is leveraging its founders’ unique scientific expertise in modulating the core glutamate / GABA pathways that play a critical role in neuropsychiatric diseases to advance a pipeline of groundbreaking therapies designed to address large unmet patient needs, including in Major Depressive Disorder (MDD).
Draig is the Welsh word for ‘dragon’ and it reflects the company’s origins in Wales. The name and logo were inspired by this heritage, reflecting its scientific roots stemming from Cardiff University.
Draig was co-founded by Cardiff University and SV Health Investors, which led the seed financing with ICG, and is backed by other leading healthcare venture firms including Access Biotechnology, Canaan Partners, SR One, Sanofi Ventures and Schroders Capital.
For more information, please visit www.draigtherapeutics.com
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.
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