UK financial services firms Phoenix Group and Schroders are to launch a new private markets investment manager, Future Growth Capital, which will aim to deploy up to £2.5bn over three years from Phoenix Group, with an initial £1bn commitment.
This strategic collaboration aims to tap into the growing demand for private market investments, offering a diversified range of opportunities across various asset classes.
The partnership between Phoenix Group, the UK’s largest long-term savings and retirement business, and Schroders, a global investment manager, will leverage Phoenix Group’s significant balance sheet strength and Schroders’ investment acumen to provide clients with access to private market investments.
The new investment manager will focus on a wide array of private market assets, including private equity, infrastructure, real estate, and private debt. By targeting these asset classes, the venture aims to offer institutional and retail investors alike access to investments that typically provide higher returns and diversification benefits compared to traditional public markets.
Andy Briggs, Group CEO of Phoenix Group, said: “This partnership with Schroders represents a significant step forward in our strategy to diversify our investment portfolio and enhance returns for our policyholders. By combining our resources, we can offer a unique proposition in the private markets space.”
Peter Harrison, Group CEO of Schroders, added: “We are delighted to partner with Phoenix Group to launch this new private markets investment manager. This venture underscores our commitment to expanding our private markets capabilities and providing our clients with innovative investment solutions.”
The new investment manager will initially focus on building a diversified portfolio of private market assets, leveraging Schroders’ extensive global network and Phoenix Group’s strong financial foundation. The venture will also explore opportunities to develop bespoke investment solutions tailored to the specific needs of its clients.
In addition to managing assets for Phoenix Group’s existing policyholders, the new entity will offer its investment solutions to third-party investors, including pension funds, insurance companies, and high-net-worth individuals.
