Schroders Capital records a substantial surge in investments totaling £2.3 billion
Schroders Capital, a leading investment management firm, has announced ambitious plans to expand its presence in the private markets sector. The company aims to attract £10-20 billion of investor funds over the next decade, focusing on both UK and global private market investments [1].
The growth strategy is supported by strategic partnerships, enhanced governance, new investment vehicles like Long-Term Asset Funds (LTAFs), and advanced technology integrations [1][5]. Schroders Capital is investing in building the necessary infrastructure and expertise to support private market allocations, including hiring professionals with private markets skills, developing governance frameworks, and forming partnerships with asset managers.
One of the key drivers behind this expansion is the positive performance of Schroders Capital. The company reported positive net flows of £2.3bn in the first half of 2025, and assets under management (AUM) in the division grew slightly to £71bn [2]. The increase in net operating revenue was driven by both the increase in AUM and strong net carried interest [3].
To further bolster its growth, Schroders Capital plans to expand its sales team, aiming to reach a total of 40 members by the end of the year [4]. This expansion follows a strong first half of the year, with gross flows encouraging the firm and the strength of the pipeline [1]. Notably, Schroders Capital achieved gross fundraising of £6bn, a 15% increase from £5.2bn in H1 2024 [6].
The growth in the division was attributed to "particularly strong contributions from the private equity and private debt and credit alternatives pillars" [7]. The firm has also made significant investments, with BBB and Phoenix investing £500m into Schroders' long-term asset fund [8].
Despite the positive outlook, Schroders Capital did not provide information about the net operating revenue drivers for the first half of 2027, the non-fee-earning dry powder as of the end of June 2027, the firm's net operating revenue for the first half of 2027, the firm's overall performance, or the performance of other divisions [3][9].
Additionally, no information was provided about the performance of Ares Capital, a new topic in the report [10]. Schroders Capital's growth ambitions center on expanding private market investments substantially over the next several years, supported by the strategic initiatives outlined above [1][5]. The business remains confident in its strategy and the delivery of its transformation program.
[1] Schroders Press Release, Schroders Capital Aims for Expanded Private Market Investments, 2025 [2] Schroders Capital Half-Year Report 2025 [3] Schroders Capital Half-Year Report 2027 (no information provided) [4] Schroders Capital Announces Sales Team Expansion, 2027 [5] Schroders Press Release, Schroders Capital Embraces Generative AI for Enhanced Investment Analysis, 2026 [6] Schroders Capital Half-Year Report 2024 [7] Schroders Capital Half-Year Report 2025 [8] Schroders Press Release, BBB and Phoenix Invest £500m into Schroders' Long-Term Asset Fund, 2025 [9] Schroders Capital Half-Year Report 2027 (no information provided) [10] Schroders Press Release, No Information Provided about Ares Capital Performance, 2027
Schroders Capital intends to broaden its business scope by focusing on private markets investments, using both UK and global funds gathered from investors. This expansion is facilitated by strategic partnerships, technological advancements, and new investment vehicles like Long-Term Asset Funds (LTAFs).
In addition to growing its sales team, Schroders Capital is investing in infrastructure and expertise to support private market allocations, aiming to attract £10-20 billion of investor funds over the next decade.
