Schroders Capital Private Equity ELTIF 2023
Helping the European economy to grow sustainably
Low entry barrier
The fund provides access to private equity with a minimum subscription of €10,000.
Attractive underlying costs
100% direct / co-investment that also offers high fee efficiency.
Diversification
With the focus on European companies, the fund is well-diversified across industry, private equity firm and enterprise value.
Investing in ELTIF with Schroders Capital
The fund aims to provide capital growth through private equity investments in small and medium sized companies which are powering the growth engine of the European economy.
With a minimum initial subscription of € 10,000, it provides access to private equity investments without requirement to invest large amounts or to be a professional investor.
Small and mid-buyouts possible outperformance
The focus on small and medium buyouts gives the ELTIF a distinction to other private equity funds that tend to have a bias toward large buyouts and pre-IPO venture capital, where correlation to the public markets is higher. In the assessment of Schroders Capital, small and medium buyout investments are more attractive as they require specialized skills to realize full potential.
Sustainability
The fund aims in meeting sustainability investment goals (Article 8 Fund under SFDR*).
Actively engaging with private companies gives the opportunity to promote more sustainable business practices and behaviours.
Thriving small and medium size enterprises are beneficial to the long term wellbeing of our society.
*An Article 8 Fund under SFDR is defined as “a Fund which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices”.
No assurance can be provided upon favorable investment outcomes. Diversification cannot ensure profits or protect against the loss of principal.
Videos
Schroders Capital Private Equity ELTIF 2023
Richard Damming, Co-Head of Private Equity Investments Europe, provides with an overview of the fund.
Case study
Tanja Lukas, Investment Director, talks about the experience of Easy Park.
What are the risks?
While private equity investments offer potentially significant capital returns, funds and companies may face business and financial uncertainties. There can be no assurance that their use of the financing will be profitable to them or to any Fund. Investing in private equity and venture capital funds and unlisted companies entails a higher risk than investing in companies listed on a recognised stock exchange or on other regulated markets. This is in particular because of the following major risk factors:
Currency risk
The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.
Interest rate risk
The fund may lose value as a direct result of interest rate changes.
Liquidity risk
The fund invests in illiquid instruments, which are harder to sell. Illiquidity increases the risks that the fund will be unable to sell its holdings in a timely manner in order to meet its financial obligations at a given point in time. It may also mean that there could be delays in investing committed capital into the asset class.
Market risk
The value of investments can go up and down and an investor may not get back the amount initially invested.
Operational risk
Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
Private Equity risk
Private equity strategies are subject to a variety of risk conditions, including, but not limited to, the risk that too much is paid for acquiring a business, new or unproven management, new or less mature business strategies or unsuccessful integration with existing businesses.
Sustainability risk
The fund has environmental and/or social characteristics. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
Tax risk
The Fund and its returns may rely on certain available tax efficiencies at the inception of the Fund which may be subject to changes in tax treatment or interpretations. Any change in the actual or perceived tax status or exposure of the Fund or its investments as well as in tax legislation, practice or in accounting standards could adversely affect the anticipated level of taxation.
Valuation risk
The valuation of private asset investments is performed on a less frequent basis than listed securities. In addition, it may be difficult to find appropriate pricing references for private asset investments. This difficulty may have an impact on the valuation of the portfolio of investments. Certain investments are valued on the basis of estimated prices and therefore subject to potentially greater pricing uncertainties than listed securities.
Performance risk
Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro-economic environment, investment objectives may become more difficult to achieve.