Schroders Capital embarks on another European Long-Term Investment Fund endeavor
Schroders Capital, a leading global asset manager, has recently announced the launch of two new European Long-Term Investment Funds (ELTIFs) aimed at broadening investor access to private equity and private market assets. These ELTIFs are designed to bring private investors into the private markets more effectively, marking another step towards democratizing access to private market investments [2].
### Details of Schroders Capital's ELTIFs
The new funds will focus on private equity opportunities across Europe and North America, providing investors with a platform to gain exposure to unlisted companies. The ELTIFs are structured under the ELTIF framework, a regulation designed to channel long-term capital into illiquid assets such as private equity, private debt, infrastructure, and real assets [1][2].
The updated "ELTIF 2.0" regime, which came into force in January 2024, provides these ELTIFs with more flexible rules. This update removes some previous challenges, making ELTIFs more accessible and attractive to both investors and fund managers [1][2].
### Benefits
One of the key advantages of ELTIFs is their ability to open the private equity and other long-term, unlisted asset classes, which were traditionally only available to institutional investors like pension funds, to a wider range of investors, including retail clients [1].
By investing in private equity and other non-public assets, investors can diversify their portfolios beyond traditional public markets, potentially benefiting from higher returns associated with private market investments. Additionally, ELTIFs are designed to increase capital flow into companies and projects requiring long-term financing, thereby supporting business growth and infrastructure development in Europe [1].
ELTIFs are regulated under EU law, providing legal protections and transparency to investors, which is vital for entry into private markets [1]. Schroders Capital’s offerings also include support for companies at follow-on stages, aiming to enhance portfolio stability and growth opportunities [3].
### Significance of the Launch
The launch of these new ELTIFs by Schroders Capital is significant as it represents another step towards democratizing access to private market investments. With lower minimum investment amounts compared to traditional private market funds, these ELTIFs offer a more accessible entry point for private investors [1].
The platform managed by Schroders Capital currently has assets worth 99.3 billion dollars, demonstrating the company's commitment to and success in the private markets sector [1]. This latest initiative is part of Schroders Capital's ongoing efforts to widen the investment base for its private markets platform, making it more inclusive for a broader range of investors.
References: [1] Schroders Capital press release, [date] [2] Schroders Capital website, [date] [3] Eltif 2.0 regulation, [date]
The new European Long-Term Investment Funds (ELTIFs) launched by Schroders Capital will focus on private equity opportunities, facilitating investors' access to unlisted companies across Europe and North America. Investing in these ELTIFs, which are structured under the ELTIF framework, offers private investors the opportunity to diversify their portfolios and potentially benefit from higher returns associated with private market investments, while also supporting business growth and infrastructure development in Europe.
