Schroders Capital is strengthening its position in private markets by launching vehicles that link institutional capital to a range of opportunities while advancing digital infrastructure in alternative investments. Two recent developments highlight the firm’s focus on bridging traditional investors with high-growth sectors and modernizing complex financial products through technology.
The first initiative centers on the UK Innovation Long-Term Asset Fund (LTAF), described as the structure tailored specifically for UK venture capital.
Launched to open doors for defined contribution pension schemes and other institutional players, the fund channels long-term capital into promising British technology and life sciences companies at venture and growth stages.
It recently achieved significant traction, surpassing £100 million in commitments across 19 portfolio investments spanning artificial intelligence and biotechnology.
Notable deployments include stakes in leading AI firms such as Synthesia, Luminance, ElevenLabs, and Wayve, alongside biopharma innovator Draig Therapeutics, which is advancing treatments for neuropsychiatric conditions.
The LTAF reached its initial £500 million close with support from major backers including the British Business Bank, a joint venture between Schroders and Standard Life, and several local government pension schemes—such as the London Borough of Lambeth—which together contributed more than £68 million.
This momentum reflects growing appetite among UK pensions for exposure to domestic innovation without the typical barriers of direct venture access.
Harry Raikes, head of UK venture investments at Schroders Capital, emphasized the fund’s role in connecting pension savers to the country’s most dynamic entrepreneurs.
He highlighted the team’s nearly three-decade track record in venture capital and its extensive network, which provides exclusive entry to top founders and specialist funds through a mix of direct deals, primary commitments, and secondary opportunities.
In parallel, Schroders Capital has enhanced its insurance-linked securities (ILS) platform by embedding tokenization technology, marking a major step forward in digital asset integration.
Developed in close partnership with global reinsurer Hannover Re and innovation specialist i.AM Innovation Lab—building directly on a 2024 proof-of-concept pilot—the upgrade enables fully digitized handling of collateralized reinsurance transactions.
The platform recently facilitated its first live, real-world deal, demonstrating practical application at scale.
Tokenization transforms how reinsurance collateral is structured, administered, and accessed by converting traditional processes into efficient, blockchain-enabled workflows.
This results in accelerated transaction settlement, greater transparency for all parties, and streamlined management of cash flows and asset control.
The capability is now available across several of the firm’s core ILS strategies, supporting broader client portfolios in the estimated $130 billion global ILS market.
Experts at Schroders view it as the latest evolution in their digital asset strategy, delivering more responsive and innovative solutions that benefit investors seeking diversification through catastrophe and insurance risks.
Together, these advancements underscore Schroders Capital’s dual emphasis on unlocking UK innovation for pension capital and leveraging technology to future-proof alternative investment platforms. By combining sector expertise with forward-looking infrastructure, the firm is focused on positioning itself—and its clients—at the forefront of economic growth as well as financial modernization.