Lengthy-term asset funds (LTAFs) are set to change into extra accessible to the UK retail funding market, as Hargreaves Lansdown has partnered with Schroders Capital so as to add two of the fund supervisor’s autos to its platform subsequent week.
Fund grocery store Hargreaves is the primary platform to supply LTAFs inside the Self-Invested Private Pension (SIPP) wrapper, that means that people will be capable of increase their pension portfolios into personal market investments.
LTAFs are designed to encourage people to place cash into long-term, illiquid belongings, together with personal fairness, infrastructure, personal debt, actual property and enterprise capital.
Learn extra: UK authorities to permit retail buyers to put money into LTAFs by ISAs
Eligible buyers could have entry to world personal fairness and power transition infrastructure capabilities managed by Schroders Capital, through Hargreaves’ platform.
Emma Wall, head of platform investments at Hargreaves Lansdown, mentioned that the agency sees the partnership as “a milestone for the accessibility of personal markets for particular person buyers within the UK.”
“For retail buyers with a long-term funding horizon, the suitable data and assets, and as a part of a well-diversified portfolio, personal markets can play an vital position in delivering distinctive progress alternatives past what is usually obtainable in public markets,” she added.
“LTAFs supply retail buyers a novel alternative to entry a variety of different belongings together with personal market investments by a fund construction particularly designed to put money into less-liquid belongings.”
Learn extra: Schroders Capital sees constructive web flows of £2.3bn
The Schroders Capital World Personal Fairness LTAF is a feeder fund into the $2.5bn Schroders Capital Semi-Liquid World Personal Fairness Fund, which focuses on small to mid-sized personal firm investments globally.
The Schroders Capital World Vitality Infrastructure LTAF is a feeder fund into the Schroders Capital Semi-Liquid World Vitality Infrastructure Fund, which invests in infrastructure resembling wind farms and photo voltaic parks that help the power transition.
“This marks a watershed second for the accessibility of personal markets for eligible retail buyers within the UK,” mentioned James Lowe, director, personal markets, Schroders Capital.
“Our partnership with Hargreaves Lansdown combines one of the best of Schroders Capital’s world personal markets experience and tailor-made LTAFs with Hargreaves Lansdown’s progressive, digital-led method to providing superior funding choices.
“Schroders Capital has led the way in which in broadening entry to personal markets within the UK by our devoted LTAFs. We’re excited to supply our two globally diversified LTAFs, offering a wider set of buyers with a brand new entry level to speculate into high-growth personal companies and important world power infrastructure, benefiting from the diversification and return potential distinctive to personal markets.”
LTAFs can already be held in SIPPs and Modern Finance ISAs. From April 2026, eligible buyers are anticipated to have the ability to additionally entry LTAFs by a shares and shares ISA.
Latest knowledge from Morningstar confirmed that authorised LTAFs have collectively hit £5m of belongings underneath administration, with proposed reforms anticipated to drive additional progress.
