Schroders Capital, a leading $97.3 billion private markets business of Schroders Group, announced it has achieved a significant funding milestone. Since January 2022, it has successfully raised over $2.6 billion for direct and co-investments in private equity, most recently driven by the successful €400 million close of one of its leading European buyout funds, Schroders Capital Private Equity Europe Direct III.
This demonstrates Schroders Capital’s position as a major participant in small—to mid-sized buyouts, which have, crucially, delivered robust returns on behalf of its clients.
Europe Direct III has gained strong support from diverse global investors, including existing clients and new investors, spanning pension funds, insurance companies, endowments, foundations, and family offices.
This fund has seen strong fundraising momentum, with clients increasingly looking to benefit from the high growth potential of European SMEs. And the firm’s investment approach, successfully implemented for two decades, is focused on delivering business transformations with low financial leverage. Schroders Capital successfully sold PSS, Olink and Intellera over the past nine months and generated more than 8x in aggregate on invested capital.
A major success story for Schroders Capital is Olink, a significant player in the life sciences sector based in Sweden. Under Schroders Capital’s ownership, the company made extensive R&D investments and launched new proprietary technologies, expanding its potential market.
The funding in Olink was alongside Summa Equity, a leading purpose-driven thematic investment firm. And the subsequent exit, which took place in July, represented the largest liquidity event for Schroders Capital from a private equity investment, resulting in proceeds of over $325 million at exit.
Schroders Capital benefits from a global reach by operating with diversified teams across strategic locations. Utilizing its diverse investment opportunities, the company offers an attractive portfolio across different geographical regions.
KEY QUOTES:
“We are extremely grateful for the continued trust and support from our global investor base. The successful closing of Europe Direct III is a testament to our team’s dedication and track record of creating value for our investors.”
“We’re pleased with the growth we’ve seen in direct and co-investments. Our strong track record, industry expertise, and global reach position us to continue offering attractive investment opportunities to our clients.”
-Richard Damming, Head of European Private Equity Investments at Schroders Capital
