Future Progress Capital (FGC), the non-public markets funding enterprise arrange by Phoenix Group and Schroders final yr, has launched two new long-term asset funds (LTAFs).
One fund can have a worldwide technique and the opposite can have a complementary UK technique. Each will supply actively-managed, diversified non-public markets publicity to personal fairness and enterprise capital, actual belongings and personal debt, focusing on a ten per cent funding return after charges every year.
LTAFs are a construction designed to encourage people to put money into long-term belongings, together with non-public debt. FGC’s two LTAFs had been permitted by the Monetary Conduct Authority in October 2024.
‘’We’re excited to be launching these two methods, designed to unlock non-public market investments for UK pension savers, effectively and cost-effectively,” stated Paul Forshaw, chief govt of FGC.
“By providing complementary international and UK LTAFs aspect by aspect we’re giving buyers the choice to determine precisely what their UK and international non-public markets exposures needs to be, at a time when funding allocations to the UK are more and more in focus.”
Learn extra: Future Progress Capital reveals CEO and senior crew
The worldwide LTAF will present publicity to belongings from non-public markets within the US, Europe and Asia.
In the meantime, the UK LTAF focuses on the funding alternatives accessible in UK non-public enterprise and UK improvement initiatives. It presents buyers an environment friendly solution to stability and diversify their public market portfolios now that 36 per cent of the UK’s 500 largest corporations are privately held, FGC stated.
It additionally presents buyers the chance to take part within the UK’s vitality transition, with the agency highlighting that £900bn of funding in vitality infrastructure is required for the UK to satisfy its vitality transition targets.
“Non-public markets are important constructing blocks to ship higher pension outcomes,” stated Ped Phrompechrut, chief funding officer of FGC.
“Usually ignored is that UK non-public markets are broader and deeper than many recognise and supply a wealthy seam of funding return potential. The UK is a hub of innovation, the third largest enterprise capital market on this planet, and the main provider of unicorn companies in Europe. There are nice funding alternatives for buyers, and we purpose to seize these for UK pension savers, alongside offering entry to a worldwide technique.’’
FGC is a brand new non-public markets funding enterprise established by Phoenix Group, the UK’s largest long-term financial savings and retirement enterprise with 12 million prospects and Schroders, the worldwide funding supervisor with a £79.3bn non-public markets functionality.
It goals to deploy £10-20bn over the subsequent decade into non-public markets, in help of the federal government’s Mansion Home goals, to spice up retirement financial savings for UK pension savers whereas unlocking long-term finance to gas UK development.
Phoenix Group intends to speculate 5 per cent of its related financial savings merchandise on behalf of its policyholders through funding merchandise managed or suggested by FGC, in keeping with its Mansion Home Compact dedication.