UK local government pension schemes back Schroders Capital's venture…

Team S · 2026-05-07T15:41:11.000Z

The London Borough of Lambeth Pension Fund has committed to Schroders Capital's UK Innovation LTAF, contributing to more than £68 million allocated to the strategy by local government pension schemes since its first close last year. The commitments push the fund past £100 million in deployed capital across 19 investments — a significant acceleration for one of the UK's first long-term asset fund structures targeting venture capital. Schroders Capital launched the UK Innovation LTAF to enable defined contribution pension schemes and other institutional investors to access early-stage UK companies, combining direct investments with primary and secondary commitments to venture managers. The vehicle raised £500 million at its first close, backed by investors including the British Business Bank and Future Growth Capital — a joint venture between Schroders and Standard Life. The portfolio spans technology and life sciences, with exposure to areas including artificial intelligence, fintech, and biopharmaceuticals. The fund's momentum is being watched closely as a test case for the UK government's ambition to route more pension capital into domestic high-growth companies. Chancellor Rachel Reeves said improving access to capital is central to the government's economic plan and would help bridge the gap between the UK's investment pools and the high-potential firms it wants to see drive the next phase of growth. Harry Raikes, head of UK venture investments at Schroders Capital, said a year on from the fund's first close, the strategy has been successfully put to work, with strong alignment between the value creation curve in venture and the long-term return objectives of pension capital.

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UK local government pension schemes back Schroders Capital's venture… | Newnex