Schroders Capital, the $99.3 billion private markets arm of investment giant Schroders, has marked another milestone in its growth trajectory with the final close of its Schroders Capital Private Equity Global Innovation XI Fund, securing over $600 million.
A strategy rooted in diversification
The Global Innovation XI Fund is structured to offer investors a comprehensive and diversified approach to private equity. Spanning the full investment lifecycle, the fund allocates capital across primary commitments in new venture funds, co-investments, direct investments, and secondary purchases. This holistic strategy not only balances risk but also ensures exposure to high-potential companies across various stages, sectors, and geographies.
A key characteristic of the fund is its emphasis on access-restricted and established funds, vehicles that typically remain closed to all but the most well-connected institutional players. Schroders Capital’s longstanding relationships and deep global network have allowed it to unlock these high-calibre opportunities for its clients, a compelling value proposition for institutional investors such as pension funds, insurance companies, foundations, and family offices, all participating in the final close. Notably, over 60% of Schroders Capital’s GP network is access-restricted, providing clients with exclusive deal flow opportunities built over 25 years.
Bets big on AI and security
A major thematic focus for the Global Innovation XI Fund is technology innovation, with particular emphasis on the rapidly evolving field of generative AI. Security, particularly in the cloud and AI ecosystems, is increasingly intertwined with broader digital transformation trends, further justifying Schroders’ sectoral priorities. Head of Global Venture Investments Steven Yang commented, “Disruptive innovation is occurring at pace and on a global scale, bringing compelling opportunities for investors.”
Schroders Capital is not only investing in future-defining technology but also breaking ground on how such investments are accessed. Last year, the firm launched the UK’s first venture and growth Long-Term Asset Fund (LTAF), marking a pivotal moment for retail and defined contribution (DC) investors. LTAFs, long promoted by UK regulators as a means to unlock private market investments for a broader investor base, are now being brought to life with scale and impact.
The Schroders Capital UK Innovation LTAF recently held its first close at £500 million, with backing from the British Business Bank and Phoenix Group, the latter via its joint venture with Schroders, Future Growth Capital.
Deep roots, modern vision
The fundraise and innovative product launches build upon a rich heritage. Founded in 1804, Schroders has grown from a family-run merchant bank into one of the world’s most respected asset managers. Over two centuries, the firm has demonstrated an extraordinary ability to adapt and lead through changing economic eras, from financing global trade in the 19th century to advancing sustainable and private markets investing today.
Schroders Capital reflects this legacy of evolution. As the firm’s private markets division, it now manages nearly $100 billion across a wide array of alternative asset classes including real estate, infrastructure, secondaries, venture capital, private debt, securitised products, insurance-linked securities, and impact investing through BlueOrchard. This depth and breadth make Schroders Capital a formidable player not only in Europe but on the global stage. As of Q1 2025, Schroders Capital reported positive net flows of £1.5 billion, bringing total assets under management to £70.5 billion within the division.
Leadership with vision
Schroders Capital benefits from the strategic leadership of Steven Yang, Head of Global Venture Investments, Georg Wunderlin, Global Head of Private Assets, and Richard Oldfield, Group CEO of Schroders. Schroders’ broader executive team, featuring leaders Johanna Kyrklund (Group CIO) and Dame Elizabeth Corley (Chair), brings decades of industry expertise and a collective vision to expand client access to private market opportunities.
This depth in leadership reflects Schroders’ historic commitment to professionalism and integrity, qualities rooted in its over 200-year history. Originally established as a merchant banking business, the firm has evolved into one of the world’s most trusted names in asset management, maintaining its family-rooted values while embracing institutional scale.
Portfolio of investments
Schroders Capital, the private assets division of Schroders, includes several notable tech and health-focused companies in its growth portfolio. Among them are:
- Revolut: A leading UK-based neobank offering global financial services and aiming to become a super-app for money management.
- Luminance: An AI-driven legal tech platform that accelerates contract analysis and due diligence, used by major law firms and corporations.
- CeQur: A Swiss healthtech company behind wearable insulin delivery devices, improving life for people with diabetes through discreet, long-acting insulin patches.
- Ada Health: A Berlin-based digital health platform using AI to support clinical decision-making and personal health assessments, with a global user base.
These investments reflect Schroders’ focus on scalable, tech-enabled solutions across fintech, legal tech, and digital health. Schroders Capital’s recent exits, such as Olink (over $325 million in proceeds, 8x invested capital) and Araris Biotech AG (7.2x gross multiple), highlight its ability to generate strong returns even in challenging markets.
Looking ahead
The final close of the Global Innovation XI Fund cements Schroders Capital’s reputation as a powerhouse in private equity and venture capital. More importantly, it signals a broader shift in private markets investing, towards innovation-driven strategies, more inclusive structures like LTAFs, and high-impact technologies such as generative AI.
Despite some challenges, such as the recent managed wind-down of the Schroders Capital Global Innovation Trust (INOV) following a 21.2% NAV decline in 2024, the firm’s willingness to adapt and pivot demonstrates resilience and strategic discipline.
In a landscape where access, insight, and execution determine outperformance, Schroders Capital is proving that it has all three. With an ambitious vision for the future and a robust infrastructure to support it, the firm is not just participating in the next era of private markets but also helping to define it.
