Schroders Capital, a private markets business of Schroders, announces the launch of additional European Long-Term Investment Funds (ELTIFs), adding to its suite of private markets solutions for private clients.
The first ELTIF is described as an evergreen fund with regular subscriptions and redemptions (Schroders Capital Semi-Liquid Global Private Equity ELTIF), while the second is a “closed-ended fund” that invests alongside the firm’s global co-investment fund (Schroders Capital Global Direct IV Access).
Both funds have similar strategies investing in small- to mid-sized buyouts across North America and Europe.
With these launches, Schroders Capital continues its role in providing innovative private market solutions to a wider segment of the investor base, making the benefit of private equity accessible to professional as well as non-professional investors.
The Schroders Capital Semi-Liquid Global Private Equity ELTIF leverages the new, more flexible ELTIF 2.0 framework and builds on the track record of the Schroders Capital Semi-Liquid Global Private Equity fund, which was launched in 2019 and is now “over $2.4bn in size.”
A principal reason for the success has been the fund’s track record of an annualised return of “14.3% since inception with an attractive portfolio of small- and mid-sized privately owned companies across North America and Europe.”
The ELTIF’s investments will mostly be co-investment and GP-led secondaries, which aim to provide an effective and fee-efficient means of investing in private equity.
The Global Private Equity ELTIF fund will invest alongside the Global Private Equity fund.
Thanks to its evergreen structure, the new fund combines the “advantages of institutional private markets expertise with a flexible structure that allows monthly subscriptions and quarterly redemptions.”
Schroders Capital Global Direct IV Access invests alongside Schroders Capital’s co-investment fund, Global Direct IV.
Global Direct IV has about $700 million of institutional investor commitments and has “deployed across several investments.”
The ELTIF provides high net worth investors a means to make investments in the fund via a structure that is better suited for private clients but “without extra fee layers that have been associated with other feeder funds.”
Global Direct IV Access has a fund term of 9 years so is “suited to long-term savings plans.”
The firm claims it is key player focused on offering structures which provide greater access to private markets via its range of listed vehicles, along with semi-liquid and illiquid structures.
This launch will add to its range of semi-liquid funds across private equity, venture capital, real estate, private credit as well as infrastructure.
In the United Kingdom, Schroders Capital has reportedly been among the first to provide evergreen funds in the form of LTAFs enabling access for DC and wealth investors.
In line or consistent with Schroders Capital’s goal to supporting responsible investment, the new ELTIF funds are “classified under Article 8 of the EU Disclosure Regulation (SFDR).”
According to the announcement, the minimum investments are €10,000 for Schroders Capital Semi-Liquid Global Private Equity ELTIF and €25,000 for Schroders Capital Global Direct IV Access.
ELTIFs, as EU-regulated fund vehicles, now aim to benefit from the ELTIF 2.0 amendments, which reportedly became effective back in January 2024, enhancing overall flexibility and streamlining key processes.
This framework enables the delivery of private market investments to non-professional investors.