Key Takeaways
- • Schroders Capital has deployed £100m across 19 investments through its UK Innovation LTAF, demonstrating accelerating capital deployment one year after the fund's £500m first close in late 2024.
- • Local Government Pension Schemes have committed over £68m to the strategy, with the London Borough of Lambeth Pension Fund among recent allocators, signalling institutional appetite for DC pension access to venture capital.
- • The fund targets early-stage UK companies in life sciences and technology, including AI, fintech, and biopharmaceutical sectors, combining direct investments with primary and secondary venture manager commitments.
- • The vehicle addresses a structural gap in defined contribution pension schemes' access to venture capital through the LTAF framework, positioning Schroders Capital's 30-year venture track record as a competitive advantage for deal sourcing and portfolio construction.
- • Investors face material risks including illiquidity, concentration in UK geography and sectors, commitment funding exposure, and private equity acquisition risks typical of early-stage venture vehicles.
Summary
Schroders Capital has accelerated capital deployment in its UK Innovation Long-Term Asset Fund, reaching £100m in deployed capital across 19 portfolio investments as of April 2026, approximately one year after the fund achieved its £500m first close. The milestone reflects growing institutional momentum for the vehicle, which represents one of the UK's first LTAF structures explicitly designed to provide venture capital access to defined contribution pension schemes and other institutional investors.
The fund's investor base has expanded materially, with Local Government Pension Schemes now representing over £68m in commitments. The London Borough of Lambeth Pension Fund joined the strategy recently, contributing to the acceleration in capital deployment. The original £500m close drew backing from cornerstone investors including the British Business Bank and Future Growth Capital, a joint venture between Schroders and Standard Life.
The portfolio spans technology and life sciences, with explicit exposure to artificial intelligence, fintech, and biopharmaceutical companies, including clinical-stage biotech firms. The investment strategy combines direct equity stakes with primary and secondary commitments to established venture managers, enabling portfolio diversification while leveraging Schroders Capital's three-decade track record in venture investing. Harry Raikes, head of UK venture investments at Schroders Capital, emphasized the firm's sourcing capabilities: "With a track record in venture capital investing across almost three decades, the strength and depth of our partner network enables unique access to the best founders and funds."
The LTAF structure addresses a structural limitation in DC pension investing by providing simplified access to illiquid, higher-return asset classes traditionally unavailable to smaller pension schemes. However, investors should note material risk factors, including concentration risk in limited UK geographies and sectors, illiquidity constraints on secondary sales, commitment funding model exposure to investor drawdown defaults, and private equity execution risks inherent to early-stage venture investing. Interest rate, currency, and market volatility also represent ongoing headwinds to fund valuations.
The fund's investor base has expanded materially, with Local Government Pension Schemes now representing over £68m in commitments. The London Borough of Lambeth Pension Fund joined the strategy recently, contributing to the acceleration in capital deployment. The original £500m close drew backing from cornerstone investors including the British Business Bank and Future Growth Capital, a joint venture between Schroders and Standard Life.
The portfolio spans technology and life sciences, with explicit exposure to artificial intelligence, fintech, and biopharmaceutical companies, including clinical-stage biotech firms. The investment strategy combines direct equity stakes with primary and secondary commitments to established venture managers, enabling portfolio diversification while leveraging Schroders Capital's three-decade track record in venture investing. Harry Raikes, head of UK venture investments at Schroders Capital, emphasized the firm's sourcing capabilities: "With a track record in venture capital investing across almost three decades, the strength and depth of our partner network enables unique access to the best founders and funds."
The LTAF structure addresses a structural limitation in DC pension investing by providing simplified access to illiquid, higher-return asset classes traditionally unavailable to smaller pension schemes. However, investors should note material risk factors, including concentration risk in limited UK geographies and sectors, illiquidity constraints on secondary sales, commitment funding model exposure to investor drawdown defaults, and private equity execution risks inherent to early-stage venture investing. Interest rate, currency, and market volatility also represent ongoing headwinds to fund valuations.
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