Schroders Capital, the $97.3 billion specialist private markets business, today announces the completion of the first £500m close of the UK Innovation LTAF (‘LTAF’, ‘the Fund’). The first of its kind LTAF has also completed two investments into UK AI companies Synthesia and Luminance.
At first close, the Fund has raised commitments from investors, including the British Business Bank and Phoenix, via its private markets venture with Schroders – Future Growth Capital. The successful close is indicative of the desire from DC pension schemes and other institutional investors to participate in the growth and development of UK early-stage companies.
The LTAF close coincides with a period of significant technological advancements in AI within the UK, and marks a pivotal moment for growth in UK venture. The strategy is concentrated on fostering the growth of groundbreaking UK early-stage companies, with a particular emphasis on technology and life sciences, in line with the UK’s Long-Term Investment for Technology and Science (LIFTS) initiative.
The Fund invests in key global innovation themes including artificial intelligence, cybersecurity, fintech & payments, consumer, infrastructure software, vertical SaaS, oncology and biotech discovery platforms. The Fund has already deployed capital and examples of investment into these themes include the strategy’s first two investments. In January 2025, the LTAF invested in Synthesia, the world’s leading enterprise AI-powered video communications platform, and this month completed an investment in Luminance, a pioneer in Legal-Grade™ AI.
The investment in Synthesia will fuel the firm’s next phase of growth, supporting product and talent growth, and drive the expansion of its innovative AI-powered video platform to meet the evolving needs of enterprises in several markets, including Japan, Australia, Europe and North America. This was an extension of Schroders Capital’s long-standing partnership with Synthesia through its co-investment partner, MMC Ventures.
For Luminance, the funding will provide resources for further innovation out of the company’s Cambridge R&D hub, as well as expansion with new hires and offices across the US, APAC and Europe.
The Fund is managed by Schroders Capital’s Tim Creed, Head of Private Equity Investments, and Harry Raikes, Investment Director.
Tim Creed, Head of Private Equity Investments, Schroders Capital said:
“The UK remains a hub for European innovation. We are pleased to complete our first close with a strategy dedicated to nurturing this vibrant innovation landscape. This milestone underscores the interest from pension schemes, reflecting the need for strategies that drive forward-thinking investments. Early-stage UK businesses are at the forefront of driving groundbreaking advancements not only in technology, but in a huge range of sectors. Now more than ever, they will play a crucial role in shaping the future of the UK economy.”
Harry Raikes, Private Equity Investment Director, Schroders Capital added:
“Our first two investments showcase our conviction in the UK and AI. We are thrilled to invest in Synthesia, a pioneering force in AI-powered communication. Its innovative platform is set to revolutionise content creation and enhance organisational communication across the globe. We are also pleased to back Luminance, a global leader in legal AI for enterprise, as we support the growth of this market in the UK.
“Both firms hold an impressive customer base that includes Fortune 100 companies, demonstrating the wider markets conviction in these innovative businesses.”
Paul Forshaw, CEO of Future Growth Capital, said:
“We’re delighted to be a founder investor in the UK Innovation Fund, helping to grow the UK businesses of the future on behalf of UK pension savers.”
Schroders Capital’s private equity team has a longstanding and successful track record in venture capital investing with almost three decades of early-stage technology and healthcare investment experience.
The firm is already a market leader in offering structures which provide greater access to private assets through its range of listed vehicles, as well as semi-liquid and illiquid structures.
Long-Term Asset Funds (LTAFs), a fund regime authorised by the UK’s Financial Conduct Authority, are vehicles designed to enable UK pension scheme investors with longer-term horizons to invest in more illiquid assets, that they haven’t historically had access to.
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