A new multi-asset long-term asset fund (LTAF) to be entirely aligned with the Mansion House Compact launched by Future Growth Capital has received regulatory approval.

The new private markets investment manager Future Growth Capital launched by Schroders and Phoenix in July to unlock investment opportunities in private markets for millions of new pension savers will run the new LTAF.

Alongside the Schroders ‘Future Growth Capital’ UK Private Assets LTAF, the firm also received approval for the Schroders ‘Future Growth Capital’ Global Private Assets LTAF.

The UK LTAF is the first multi-asset LTAF to be dedicated to the UK market. It aims to invest across a wide range of UK private market assets to generate potentially higher returns, while also supporting the growth of some of the country’s most exciting businesses.

The global LTAF is intended to provide diversified exposure across a broad spectrum of international investment opportunities in private markets.

Future Growth Capital said that with a significant appetite to invest in UK private markets, it will also seek to promote the UK’s private markets ecosystem, further enhancing the UK as an attractive destination for international investors.

The firm aims to deploy an initial £1bn as part of a planned £10-20bn deployment over the next decade into UK and global private markets.

Phoenix Group plans to invest 5% of its relevant savings products on behalf of its policyholders, in line with its Mansion House Compact commitment.

Future Growth Capital added that ongoing fundraising will be led by both Schroders and Phoenix Group.

Paul Forshaw, chief executive officer of Future Growth Capital, said: “This is a significant step forward for our new business and for UK pension capital.”

According to Forshar, the UK LTAF will be the first fund entirely aligned with the Mansion House Compact.

Meanwhile, the global LTAF will provide long-term savers with the benefits of further diversification across a spectrum of international private assets, he said.

Forshaw added: “Importantly, both LTAFs have the potential to deliver better long-term retirement performance.”

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Pamela is IPE's UK correspondent. Before joining IPE in May 2023, she spent five years writing about the insurance industry. During her career so far she won awards for Most Promising Newcomer in 2020 and Best Investigative Article in 2022 from the British Insurance Brokers Association, and was also highly commended at the WTW Media Awards for Insurance Features Journalist of The Year.View full Profile

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