Rachel Reeves: Improving access to capital is key. Credit: HM Treasury/Flickr
Schroders Capital has announced it has committed over £100m on behalf of its UK Innovation long-term asset fund (LTAF).
The private markets manager said the LTAF – launched in September 2024 and understood to be the first investment structure of its kind for UK venture capital – had raised £500m at its first close last year, with commitments from investors including the British Business Bank and Standard Life.
The LTAF has since welcomed over £68m from local government pension schemes, including a commitment from the London Borough of Lambeth Pension Fund.
Since its first close, the LTAF has invested in technology companies including AI research and product company, Eleven Labs; autonomous driving software firm Wayve; AI video communication platform Synthesia; legal AI firm Luminance; and energy firm Tem Energy.
It has also invested in biotech and biopharmaceuticals companies such as AAVantgarde Bio, a clinical-stage biopharma company developing gene therapies for inherited retinal diseases; Draig Therapeutics, a neuropsychiatry business; Artios Pharma, a cancer therapeutics business targeting difficult-to-treat cancers; and Kinaset Therapeutics, a firm developing a therapeutic candidate to treat serious respiratory diseases.
Schroders Capital said that, with 12 company investments and seven venture capital manager relationships made to date, momentum was growing toward delivering its commitment to scale early-stage businesses driving important innovation while opening up pension capital's access to the UK's dynamic venture market.
Head of UK venture investments Harry Raikes said: "The strength and depth of our partner network enables unique access to the best founders and funds. These companies are at the forefront of high-impact, world-class innovation, tackling enduring social need – from critical research into medical therapies, to powering the future of our essential industries.
"A year on from the LIFTS initiative and UK Innovation first-close, we have successfully put our strategy to work – fostering the growth of groundbreaking early-stage companies in the UK while unlocking access to the outsized return potential associated with VC.
"We firmly believe that there is strong alignment between the growth and value creation curve in venture, and the long-term member outcome objectives of pension capital."
Chancellor of the Exchequer Rachel Reeves commented: "We have the right economic plan – stability, an active partnership, reform, and trade define our partnership with business. Improving access to capital is key to this, and will help bridge the gap between the UK's investment pools and the high-potential firms that will help drive the next phase of growth across the UK."
