The London Borough of Lambeth Pension Fund has committed to Schroders Capital’s UK Innovation LTAF, part of more than £68m allocated by local government pension schemes to the strategy since its first close last yearc.
The commitments contribute to the fund surpassing £100m in deployed capital across 19 investments, marking an acceleration in activity for one of the UK’s first long-term asset fund (LTAF) structures targeting venture capital.
Schroders Capital launched the strategy to enable defined contribution (DC) 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 £500m at first close, with backing from 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 such as artificial intelligence, fintech and biopharmaceuticals. Investments include AI and software companies alongside clinical-stage biotech firms.
Harry Raikes, head of UK venture investments at Schroders Capital, said: “With a track record in venture capital investing across almost three decades, the strength and depth of our partner network enables unique access to the best founders and funds. These companies are at the forefront of high-impact, world-class innovation, tackling enduring social need – from critical research into medical therapies, to powering the future of our essential industries.”
He added: “A year on from the LIFTS initiative and UK Innovation first-close, we have successfully put our strategy to work – fostering the growth of groundbreaking early-stage companies in the UK while unlocking access to the outsized return potential associated with VC.”
Raikes believes “there is strong alignment between the growth and value creation curve in venture, and the long-term member outcome objectives of pension capital”.
Chancellor of the exchequer Rachel Reeves said: “We have the right economic plan – stability, an active partnership, reform, and trade define our partnership with business. Improving access to capital is key to this, and will help bridge the gap between the UK’s investment pools and the high-potential firms that will help drive the next phase of growth across the UK.”
