MEDIA RELEASE: Schroders has launched a private equity fund for Australian investors and has signalled its intent to offer more private asset solutions locally.
The Schroder Specialist Private Equity Fund (SSPEF) aims to provide a greater range of investors with access to the often hard-to-reach global private equity markets.
Chris Durack, Schroders Australia CEO, says the fund is designed to give Australian investors easier access to a professionally managed portfolio of private equity investments, an asset class that was previously often reserved for only the largest and most sophisticated investors.
“The SSPEF aims to provide investors with diversification away from listed equity markets with a particular focus on small-to-mid cap specialist opportunities in the US and Europe, as well as Asian growth companies.
“These companies, at smaller and earlier stages in their life cycle, are generally not accessible via listed markets. Additionally, this is an area where we see a particularly compelling risk/return trade-off for investors,” says Mr Durack.
The fund is semi-liquid, which means investors can access their money on a quarterly basis should they wish to – generally capped at 5% of net asset value per quarter.
“We believe this investment focus and fund liquidity, combined with clear and transparent pricing, set the fund apart from others available to Australian investors,” he says.
Mr Durack says Schroders is well placed to focus on private assets.
In 2017 Schroders acquired Adveq – a leading private equity firm headquartered in Switzerland. Adveq, now known as Schroder Adveq, has over 20 years of experience investing in private equity around the globe.
“Schroder Adveq’s pedigree in private equity coupled with Schroders’ 200 year heritage makes us ideally suited for investors looking for longer-term investment opportunities such as private equity.”
Schroders manages A$60 billion across a range of private asset classes including private equity, real estate, infrastructure, insurance-linked securities and private debt.
Mr Durack says the reasons to invest in private equity right now are particularly compelling.
“In a market where company valuations have become distorted, interest rates remain low and volatility in listed markets is more prevalent, we continue to look for ways that we can help investors meet their objectives over the longer term. As private equity transactions price off fundamentals, and with less capital in the market at present, we’re currently seeing very well priced opportunities. Now is an opportune time to invest in this asset class.
“We recognise that high quality, sustainable, unlisted assets play an important role in allowing investors to access the full breadth of investment opportunities in the market. As such, Schroders has drawn upon both global and local investment capabilities in public and private markets to create a broader universe of investment solutions for investors.”