UK $97 Billion Private Asset Manager Schroders Capital Small & Mid-Buyouts Global Private Equity Strategy Crosses $2 Billion AUM, Focuses on Buyouts of Small & Medium Companies from Western Economics & Asian Growth Opportunities, Small & Mid-Sized Private Equity Strategies Outperform Large Counterparts
10th December 2024 | Hong Kong
UK private asset manager Schroders Capital ($97 billion AUM) small & mid-buyouts global private equity strategy has crossed $2 billion AUM, with the strategy focusing on buyouts of small & medium companies from Western economics & Asian growth opportunities. Schroders Capital private equity team analysis shows that small & mid-sized private equity strategies outperform large counterparts. Schroders (10/12/24): “Schroders Capital, the US$97.3 billion private markets business of Schroders Group, has surpassed US$2 billion for its small and mid-buyouts global private equity strategy. The Semi-Liquid Global Private Equity strategy has garnered significant interest from a diverse range of institutional and wealth investors across the globe seeking to tap into the advantages of small and mid-sized private equity investments, alongside the benefits offered by an evergreen strategy structure. The strategy focuses on buyouts of small and medium companies from Western economies and Asian growth opportunities. The strategy targets a portfolio that’s well diversified by region, investment vintage and sector resulting in it being less exposed to cycles affecting certain sectors. Analysis from Schroders Capital’s private equity team shows that small and mid-sized private equity strategies have, in fact, outperformed their large counterparts with more robust and persistent returns through time. Moreover, the small and mid-segment has contributed to the vast majority of opportunities in private equity and indicates why investors are looking to allocate to this attractive segment of the market. Semi-liquid strategies represent a relatively new route to access private markets. Schroders Capital has been at the forefront of innovation in structuring financial products to open up access to private markets for a broader range of investors across the globe. This strategy was the first in Schroders Capital’s semi-liquid range, which now offers venture capital, infrastructure and real estate to both institutional and wealth clients. This news also follows previous announcements that accredited investors now have access to the Semi-Liquid Global Private Equity strategy via partnerships with iCapital and ADDX.” In 2024 July, Schroders Capital launched the tokenised pilot on Insurance-Linked Securities (ILS), testing with global reinsurer Hannover Re to tokenise reinsurance contracts & trade on public blockchain platform which speeds up investment process including automating subscriptions & reducing settlement period. Insurance payments are also automatically triggered in events such as hurricanes, earthquakes & windstorms. Schroders Capital Insurance-Linked Securities (ILS) team manages $5 billion AUM.
“ UK $97 Billion Private Asset Manager Schroders Capital Small & Mid-Buyouts Global Private Equity Strategy Crosses $2 Billion AUM, Focuses on Buyouts of Small & Medium Companies from Western Economics & Asian Growth Opportunities, Small & Mid-Sized Private Equity Strategies Outperform Large Counterparts “
Benjamin Alt, Head of Global Private Equity Portfolios: “Out of a handful of private equity semi-liquid strategies in the market, we are able to offer a strategy with access to the small and mid market1. There is a clear case for investing in this part of the market and it is important to deliver the benefits of these investments to as many clients as possible … … Investors are turning to private equity for higher returns and diversification benefits and we’re glad to have the infrastructure and knowledge to create the right solutions for all investor types to be able access these.”
Schroders Capital – Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in- class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates. The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity. With US$97.3 billion (£77.0 billion; €90.8 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
Schroders plc – Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £773.7 billion (€912.6 billion; US$978.1 billion) of assets under management at 30 June 2024. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family- founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital. Schroders’ success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate. Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.
$94 Billion Schroders Capital Launches Tokenised Pilot on Insurance-Linked Securities (ILS), Tested with Global Reinsurer Hannover Re to Tokenise Reinsurance Contracts & Trade on Public Blockchain Platform Speeding Up Investment Process Including Automating Subscriptions & Reducing Settlement Period, Insurance Payments are Automatically Triggered in Events Such as Hurricanes, Earthquakes & Windstorms, Schroders Capital Insurance-Linked Securities (ILS) Team Manages $5 Billion AUM
8th July 2024 – Schroders Capital with $94 billion AUM has launched the tokenised pilot on Insurance-Linked Securities (ILS), testing with global reinsurer Hannover Re to tokenise reinsurance contracts & trade on public blockchain platform which speeds up investment process including automating subscriptions & reducing settlement period. Insurance payments are also automatically triggered in events such as hurricanes, earthquakes & windstorms. Schroders Capital Insurance-Linked Securities (ILS) team manages $5 billion AUM. Schroders Capital (8/7/24): “Schroders Capital, the c.US$94 billion private markets business of Schroders Group, today announces the launch of an innovative tokenisation pilot designed to enhance the way insurance-linked securities (ILS) investments are invested and managed. The proof of concept was a collaboration with global reinsurance company, Hannover Re. The pilot further builds on Schroders Group’s commitment to innovation and leadership in digital assets, after having last year joined the Monetary Authority of Singapore’s Project Guardian, and participating in the first ever GBP Digital Bond issued by the European Investment Bank. The initiative with Hannover Re, which has been tested by Schroders on an internal-only basis, has successfully enabled reinsurance contracts to be tokenised and traded on a public blockchain platform using smart contracts. Each token represents a share in a portfolio of reinsurance contracts, demonstrating how ILS funds may invest via a digital eco- system in the future. Tokenising these contracts has, with the consistent oversight of investment professionals, allowed many time- consuming processes to be automated. For example, the pilot group was able to streamline the investment process by automating subscriptions and reducing settlement times. Furthermore, through the integration of key catastrophe insurance data sources into the smart contracts, payments to the appropriate recipient are automatically triggered if specific natural disasters occur, such as US hurricanes or earthquakes, or European windstorms. The pilot also demonstrated the potential for an improved client experience, boosting accessibility by allowing tokens to be held in investors’ own digital wallets alongside their other digital investments. The use of a public blockchain has also enhanced transparency, while still allowing appropriate governance and controls to be applied. Earlier this year, Schroders Capital also announced that its ILS team is now managing over US$5 billion in funds as client demand continues to grow. The ILS team forms part of Schroders Capital’s Private Debt and Credit Alternatives (PDCA) business which was launched in 2023 and manages over US$30 billion in assets … … This project was the result of more than a year of collaboration between Schroders, Hannover Re and the i.AM Innovation Lab, under the oversight of the Guernsey Financial Services Commission (GFSC). Schroders Capital’s focus on innovation is a key theme and it plans to use the findings of this proof of concept to explore further tokenisation opportunities in the reinsurance market. In addition, in late-June the business also unveiled its Generative AI Investment Analyst (GAiiA) platform, designed to speed up the analysis of large volumes of data.”
Stephan Ruoff, Co-Head of Private Debt and Credit Alternatives, Schroders Capital: “The success of this pilot showcases the immense potential for enhancing transparency, streamlining investment processes and improving client experience in the reinsurance sector. It paves the way for a more interconnected and efficient digital ecosystem, and we are looking forward to exploring broader application to wider investment scenarios and clients.”
Henning Ludolphs, Managing Director Retrocession & Capital Markets, Hannover Re: “This proof of concept was a great opportunity to understand the capabilities of blockchain technology when applied to the reinsurance market. With strong governance and embedded compliance in place, the pilot also showed that the regulatory and operational risks around blockchain are similar to those of other market transactions. While this is an emerging technology, we anticipate more appetite for blockchain-enabled investments in the future, and this pilot prepares us well to evolve our approach to generate further retrocession capacity via a different source.”
$94 Billion Schroders Capital Launches Generative AI Investment Analyst (GAiiA) Platform to Speed Up Analysis of Large Volumes of Data & to Allow Private Equity Investment Specialists to Focus on Strategic Investment Activity, GAiiA Platform Automatically Screens Data, Accelerate Due Diligence Processes & Generates Draft Investment Memos
5th July 2024 – Schroders Capital with $94 billion AUM has launched the Generative AI Investment Analyst (GAiiA) platform to speed up analysis of large volumes of data and to allow private equity investment specialists to focus on strategic investment activity. The GAiiA platform automatically screens data, accelerates due diligence processes, and generates draft investment memos. Schroders Capital (26/6/24): “Schroders Capital, Schroders’ specialist private markets business with $94 billion of assets under management, today unveils its Generative AI Investment Analyst (GAiiA) platform. This innovation is designed to speed up the analysis of large volumes of data, enabling our private equity investment specialists to focus on delivering value through strategic investment activity to further support our clients’ investment needs. It follows comprehensive in-house testing and further builds on the technology evolution across the Schroders Group, which has been actively deploying generative AI across the business for a substantial period. Schroders Capital’s proprietary and internal-only platform harnesses the technical expertise of its data science specialists alongside the deep investment knowledge of its private equity team. It forms a core component of our leading private markets investment intellectual property. Our private equity specialists can now automatically screen extensive volumes of data, accelerate due diligence processes and generate a significant portion of draft investment summaries in significantly less time. By supporting with the creation of draft investment memos, the platform has the potential to become a key part of the investment process. By handling the heavy lifting of data analysis, GAiiA, which always has continual and extensive human oversight and control, can enable Schroders Capital’s investment professionals to analyse even more investments, allowing them to reallocate more of their time on adding value through direct interactions and strategic decisions with target and existing investments. GAiiA is currently being used by Schroders Capital’s private equity team for private equity direct/co-investments. It is continually being optimised with plans to expand its use to private equity primaries and secondaries in the future and to other private market asset classes within Schroders Capital where appropriate.”
Nils Rode, Chief Investment Officer at Schroders Capital: “This proprietary platform will elevate our investment analysis to a new level, enabling our team to make faster and even more informed investment decisions and to focus on higher-value activities. The implementation of GAiiA showcases our commitment to innovation and leveraging technology to deliver superior client outcomes. Across the business, Schroders has made its internal-only AI assistant, Genie, available to all employees globally. Leveraging the latest GPT models, Genie is now used by over 1,000 colleagues across the firm each day. More broadly, Schroders has already identified and is working on a substantial number of potential AI use-cases across the business, such as translations, as well as helping our specialists better understand clients’ behaviours and investment patterns.
Graham Taylor, Head of Private Assets Data Insights at Schroders Capital: “Schroders envisions a future where AI tools become an integral part of the investment process. The implementation of GAiiA is a significant step towards this vision. We are committed to driving innovation and embracing technology to deliver exceptional value to our clients across asset classes.”
Schroders Capital – Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates. The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity. With $93.7 billion (£73.5 billion; €84.8 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
Schroders plc – Schroders is a global investment management firm with £750.6 billion (€866.2 billion; $956.9 billion) assets under management, as at 31 December 2023. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion and over 6,400 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares. Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private markets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms. Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.
Schroder Investment Management North America Inc. (“SIMNA Inc.”) is registered as an investment adviser, CRD Number 105820, with the US Securities and Exchange Commission and as a Portfolio Manager, NRD Number 12130, with the securities regulatory authorities in Canada. It provides asset management products and services to clients in the United States and Canada. Schroder Fund Advisors LLC (“SFA”) markets certain investment vehicles for which SIMNA Inc. is an investment adviser. SFA is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with the Financial Industry Regulatory Authority and as an Exempt Market Dealer with the securities regulatory authorities in Canada. SIMNA Inc. and SFA are wholly-owned subsidiaries of Schroders plc, a UK public company with shares listed on the London Stock Exchange.
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