Schroders Capital launches UK’s first renewables and energy transition infrastructure dedicated Long-Term Asset Fund

8 February 2024

Schroders Greencoat, the specialist renewables and energy transition infrastructure manager of Schroders Capital, today announces the launch of Schroders Greencoat Global Renewables+ Long-Term Asset Fund (LTAF).

This is the UK’s first LTAF exclusively dedicated to renewable energy and energy transition infrastructure, and a landmark opportunity for UK pension savers to invest in this strategically important asset class while benefitting from stable, diversifying and inflation-linked investment returns.

The new fund will target infrastructure supporting the energy transition across the UK, US, and Europe, providing access to attractive, long-term investments in private markets. It will deploy capital across wind and solar assets, as well as a range of energy transition assets including hydrogen, heating and storage.

LTAFs are regulated, open-ended investment vehicles designed to enable a broader range of investors, with longer-term horizons, to invest efficiently in illiquid and private markets. Their structure is particularly suitable for the UK defined contribution (DC) and UK charities markets, providing savers with access to a previously untapped opportunity, as well as through defined benefit (DB) pension schemes.

The Schroders Greencoat Global Renewables+ LTAF builds on Schroders Capital’s track record of providing innovative products focused on client needs. It builds on the launch of the UK’s first LTAF, the Schroders Capital Climate+ LTAF, last year, adding to the suite of private market solutions offered to DC schemes and other clients.

This is part of Schroders Greencoat’s suite of semi-liquid funds, which offer more liquid and operationally simple access to private assets investments. It will be managed by Schroders Greencoat alongside its Luxembourg-domiciled sister fund, the Schroders Capital Semi-Liquid Energy Transition Fund, launched in January. Schroders is already a market leader in offering structures which provide greater access to private assets through its range of listed vehicles, with six funds spanning private equity, real estate and credit, available within its Schroders Capital Semi-Liquid range.

Duncan Hale, Portfolio Manager at Schroders Greencoat, said:

“We are pleased to be introducing this groundbreaking LTAF, which, will offer investors a powerful combination of strong returns potential with a unique risk profile, while directing essential capital towards decarbonising and electrifying our energy sources.

“This new LTAF reflects Schroders Greencoat’s consistent track-record of being at the forefront of innovative private market offerings, which in this case also includes a diversified portfolio base. Alongside wind and solar, a dedicated portion of this portfolio also taps into newer technologies associated with energy-transition-related infrastructure, like hydrogen and district heating, which have the potential to generate superior returns across a longer period.”

Tim Horne, Head of UK Institutional Defined Contribution at Schroders, said:

“Schroders Capital now has two of the five authorised LTAFs currently available, putting us at the forefront of the evolving private market.

“With the DC market expected to make material investments into private markets over the coming years, the ability to access dedicated renewable energy and the energy transition exposure is an attractive and highly diversifying potential addition to DC members’ portfolios.

“It’s exciting to be able to offer DC members and other investors access to these assets, which meet both their need for stable long-term returns and sustainability goals.”

Source: Schroders
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