Schroders Capital, the private markets division of the multinational asset management company Schroders, has successfully concluded its Schroders Capital Private Equity Global Innovation XI Fund, raising over $600 million from a diverse cohort of global investors. These include prominent pension funds, insurance companies, foundations, and family offices, reflecting a robust interest in private equity investments that promise innovation and growth.

The fund’s investment strategy spans the entirety of the investment lifecycle, encompassing primary commitments in new venture funds, co-investments, and secondary purchases. This holistic approach enables investors to gain exposure to a diversified portfolio of companies across various stages, sectors, and regions, with a strong emphasis on technology innovation. Notably, the fund aims to harness the transformative capabilities of generative AI, demonstrated by its investment in Scale AI, a leader in AI data services essential for accelerating the development of AI applications.

This recent fundraising is part of a broader narrative of Schroders Capital’s evolution in the private equity space, where, since 1997, its Global Innovation team has deployed over $6.5 billion into venture and growth investments globally. The emergence of demand for innovative investment structures was highlighted last year with the launch of the UK’s first venture and growth Long-Term Asset Fund (LTAF), which recently closed with £500 million in commitments. This fund has already made pivotal investments in UK-based AI firms such as Synthesia and Luminance.

Steven Yang, the Head of Global Innovation at Schroders Capital, expressed confidence in the fund’s success, stating, “The strong fundraising momentum and successful closing of Global Innovation XI underscores our commitment to delivering exceptional value and innovative solutions for our investors.” He further remarked on the rapid pace of disruptive innovation globally, noting that sectors like technology, artificial intelligence, and biopharma are at the forefront of investment opportunities.

Additionally, the trust associated with Schroders Capital, the Global Innovation Trust, continues to thrive. As of the end of December 2023, its portfolio comprises a significant collection of quoted and unquoted companies primarily within the technology and healthcare sectors. Notable holdings include Oxford Nanopore Technologies and Atom Bank. The trust is structured to support businesses with promising growth trajectories, mirroring the strategic objectives of the broader private equity investments managed by Schroders.

Highlighting the success of its investment strategy, the Global Innovation Trust recently experienced a surge in its share value following the announcement of a notable acquisition involving its investee, Araris Biotech AG, by Taiho Pharmaceutical Co Ltd for $400 million upfront, with potential additional payments. Such developments not only validate the fund’s strategic approach but also bolster investor confidence in Schroders Capital’s capacity to deliver substantial returns.

In the sphere of healthcare innovation, the Global Innovation Trust also invested $1.6 million in Neurona Therapeutics, a clinical-stage cell therapy company. This investment aligns with an ongoing commitment to address unmet healthcare needs, particularly in chronic neurological disorders, underscoring Schroders’ proactive approach to fostering transformative healthcare solutions within its investment portfolio.

As the landscape of venture capital continues to evolve, Schroders Capital appears well-positioned to capture emerging growth opportunities, bolstered by its established relationships and diversified investment strategies.

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Source: Noah Wire Services