Schroders Capital, the $99.3 billion private markets business of Schroders, has successfully raised over $600 million at the final close of its Schroders Capital Private Equity Global Innovation XI Fund.
The latest fundraise has attracted global investors “including pension funds, insurance companies, foundations and family offices.”
Spanning the full investment lifecycle from primary commitments into new venture funds, “to direct investments, co-investments and secondary purchases, the strategy provides exposure to portfolio companies diversified across stages, sectors and regions.”
The portfolio allocates predominantly to “established and access restricted investments.”
A key sector focus is technology innovation, particularly in “developing businesses that are set to capitalise on the transformative potential and value creation of generative AI.”
An example of this includes Scale AI, a firm focused on AI data labelling and model evaluation services, “helping to accelerate the development of AI applications.”
Security has also been an area of focus for the strategy; an upcoming exit includes Wiz, a key player in cloud security, which is “set to be acquired by Google for $32 billion, pending regulatory approval.”
Steven Yang, Head of Global Innovation at Schroders Capital, said:
“The strong fundraising momentum and successful closing of Global Innovation XI underscores our commitment to delivering exceptional value and innovative solutions for our investors. Disruptive innovation is occurring at pace and on a global scale, bringing compelling opportunities for investors. Against this backdrop, we have seen increasing interest in venture exposure within sectors exhibiting strong innovation potential, with technology, artificial intelligence and biopharma at the forefront.”
They added:
“Our strong relationships and diversified portfolio make us well-positioned to further capture the emerging growth and value creation opportunities from these global innovation shifts – providing our investors access to leading investments across the world’s innovation hubs.”
Since 1997, the Global Innovation team has been a key player in venture investing.
Over the years, the team has evolved into “a global investment platform that covers all key regions of venture activity and has deployed over $6.5bn into venture and growth.”
Schroders Capital launched the UK‘s venture and growth LTAF last year in response to “increasing demand from defined contribution clients, reflecting the team’s position in launching innovative structures to open-up access for a broader set of clients.”
The Schroders Capital UK Innovation LTAF recently “held its first close of £500m, including commitments from the British Business Bank and Phoenix, via its private markets venture with Schroders – Future Growth Capital.”
The LTAF also completed two investments “into UK AI companies Synthesia and Luminance.”