Key Takeaways
- • Lambeth Pension Fund joins multiple Local Government Pension Schemes (LGPS) in committing capital to Schroders Capital's UK Innovation Long Term Asset Fund (LTAF), with combined LGPS allocations reaching £68m since the fund's first close.
- • Schroders Capital's UK Innovation LTAF has surpassed £100m in deployed capital across 19 investments, demonstrating accelerated activity in one of the UK's first long-term asset fund structures dedicated to venture capital access for institutional investors.
- • The vehicle, which raised £500m at first close with backing from the British Business Bank and Future Growth Capital (a Schroders-Standard Life joint venture), enables defined contribution pension schemes and institutional investors to access early-stage UK companies through direct investments and commitments to venture managers.
- • Portfolio exposure spans technology and life sciences sectors, including artificial intelligence, fintech, and biopharmaceuticals, positioning the fund within high-growth segments of the UK venture ecosystem.
- • This initiative aligns with broader UK government efforts to boost venture capital investment and support underrepresented fund managers and investors through structured long-term capital access mechanisms.
Summary
The London Borough of Lambeth Pension Fund has committed capital to Schroders Capital's UK Innovation Long Term Asset Fund, joining a growing cohort of Local Government Pension Schemes backing the venture capital strategy. This latest commitment reflects sustained institutional interest in the LTAF structure, which was specifically designed to democratize early-stage company access for defined contribution pension schemes and other long-term institutional investors traditionally underrepresented in venture capital.
Since the fund's first close, Local Government Pension Schemes have collectively allocated more than £68m to the strategy, demonstrating meaningful pension fund appetite for UK venture exposure. The cumulative deployment across the vehicle now exceeds £100m, distributed across 19 investments. This pace of capital deployment signals accelerating execution and validates the LTAF model as a viable institutional venture vehicle in a market where such structures remain relatively nascent.
Schroders Capital launched the UK Innovation LTAF to provide structured access to early-stage UK companies through a diversified approach combining direct investments with primary and secondary commitments to venture capital managers. The strategy raised £500m at its first close, supported by anchor investors including the British Business Bank—the UK government's development finance institution—and Future Growth Capital, a joint venture between Schroders and Standard Life. This institutional backing underscores confidence in the fund's strategy and governance.
The portfolio maintains concentrated exposure to high-growth sectors, primarily technology and life sciences, with specific allocations to artificial intelligence, fintech, and biopharmaceuticals. Companies in the portfolio span AI and software development through to clinical-stage biotech firms, positioning the fund within segments aligned with both UK innovation priorities and outsized return potential in venture capital. According to Harry Raikes, head of UK venture investments at Schroders Capital, the firm's three-decade track record in venture investing and established partnerships provide unique access to founders and funds at the forefront of world-class innovation addressing critical social and economic needs.
This initiative reflects the broader UK government drive to expand venture capital access and support high-potential new entrants to the market. Recent government backing of £500m specifically targets underrepresented investors and fund managers seeking to build track records in the venture ecosystem, complementing institutional frameworks like the Schroders LTAF that channel capital into domestic innovation.
Since the fund's first close, Local Government Pension Schemes have collectively allocated more than £68m to the strategy, demonstrating meaningful pension fund appetite for UK venture exposure. The cumulative deployment across the vehicle now exceeds £100m, distributed across 19 investments. This pace of capital deployment signals accelerating execution and validates the LTAF model as a viable institutional venture vehicle in a market where such structures remain relatively nascent.
Schroders Capital launched the UK Innovation LTAF to provide structured access to early-stage UK companies through a diversified approach combining direct investments with primary and secondary commitments to venture capital managers. The strategy raised £500m at its first close, supported by anchor investors including the British Business Bank—the UK government's development finance institution—and Future Growth Capital, a joint venture between Schroders and Standard Life. This institutional backing underscores confidence in the fund's strategy and governance.
The portfolio maintains concentrated exposure to high-growth sectors, primarily technology and life sciences, with specific allocations to artificial intelligence, fintech, and biopharmaceuticals. Companies in the portfolio span AI and software development through to clinical-stage biotech firms, positioning the fund within segments aligned with both UK innovation priorities and outsized return potential in venture capital. According to Harry Raikes, head of UK venture investments at Schroders Capital, the firm's three-decade track record in venture investing and established partnerships provide unique access to founders and funds at the forefront of world-class innovation addressing critical social and economic needs.
This initiative reflects the broader UK government drive to expand venture capital access and support high-potential new entrants to the market. Recent government backing of £500m specifically targets underrepresented investors and fund managers seeking to build track records in the venture ecosystem, complementing institutional frameworks like the Schroders LTAF that channel capital into domestic innovation.
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