Global investment manager Schroders’ private markets investment division Schroders Capital announced today that it has received approval from the UK’s Financial Conduct Authority for the first-ever energy transition-focused Long-Term Asset Fund (LTAF), a new investment vehicle designed to give investors access to illiquid and private assets, such as renewable energy infrastructure.

The announcement follows the launch of the UK’s first LTAF by Schroders in March, targeting climate change and net zero-focused investments. The new LTAF will focus on renewable energy and energy transition aligned infrastructure investments, including wind and solar. According to Schroder, the fund will help unlock new capital flows for infrastructure projects, allowing investors, particularly Defined Contribution (DC) pension managers, to invest in renewable energy projects.

Tim Horne, Head of UK Institutional DC, Schroders, said:

“Broadening the opportunity set for savers needs to be a priority for the DC market, particularly in private assets which have the potential to help DC investors achieve their aims of a good outcome in retirement. Schroders continues to lead the market in DC innovation, having two of the three authorised LTAFs. The growth and investment into our LTAF platform is just one way we are helping to meet the needs of UK retirement savers.”

The new LTAF will be managed by renewable energy specialist Schroders Greencoat. Schroders acquired Greencoat last year, with a stated goal to become a global leader in the fast-growing renewable infrastructure sector.

Duncan Hale, Private Markets Group, Schroders Greencoat, said:

“For too long DC pension scheme members have had their noses pressed up against the glass, looking in at other types of investors enjoying the benefits that come from investing in illiquid assets. We are excited about the ability to offer access to renewable energy and energy transition related infrastructure assets to DC members widely, not only due to the attractive risk and return metrics they provide but also their ability to reflect members’ sustainability requirements.”

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