Schroders Capital has raised £100m in the latest fundraising round for its UK Innovation Long-Term Asset Fund, including backing from funds within the Local Government Pension Scheme (LGPS).
The fund targets early-stage and venture capital companies based in the UK, including firms working in fields such as artificial intelligence, fintech, and biopharmaceuticals.
Schroders received £500m for the fund last year, including commitments from the British Business Bank and Standard Life. Most recently, LGPS funds including the London Borough of Lambeth Pension Fund allocated more than £68m.
“Improving access to capital… will help bridge the gap between the UK’s investment pools and the high-potential firms that will help drive the next phase of growth across the UK.”
Rachel Reeves
Harry Raikes, head of UK venture investments at Schroders Capital, said: “We are proud to be bringing the best of the UK innovation economy to UK pensions… These companies are at the forefront of high-impact, world-class innovation, tackling enduring social need – from critical research into medical therapies, to powering the future of our essential industries.”
Investments made by the UK Innovation LTAF include a stake in Wayve, an autonomous driving technology company that was also backed directly by the British Business Bank.
Chancellor Rachel Reeves stated: “We have the right economic plan – stability, an active partnership, reform, and trade define our partnership with business. Improving access to capital is key to this, and will help bridge the gap between the UK’s investment pools and the high-potential firms that will help drive the next phase of growth across the UK.”
Christine Hockley, managing director and head of commercial equity funds at the British Business Bank, said: “The UK has the third-largest venture capital market in the world, yet pension fund capital has historically been deeply underrepresented.
“By mobilising pension fund capital into the UK venture capital market, we are unlocking growth, creating jobs and driving productivity, ultimately bridging the gap between the UK’s large domestic savings pool and our fast-growing companies.”
