Schroders has formed a partnership with ADDX, a Singapore-based private markets and alternative investment platform, to broaden access for accredited investors with a semi-liquid global private equity strategy.
The collaboration will enable investors to access private equity opportunities, with a focus on the lower mid-market segment where market inefficiencies can be exploited.
The investment strategy encompasses global private equity markets, with significant exposure in Europe and the United States. While the allocation to Asia and other geographies is lower, the approach reflects a greater emphasis on growth investments in these markets.
From a sector allocation perspective, the strategy is broadly diversified across five industry sectors, namely healthcare, technology, consumer, business services and industrials.
Leveraging Schroders Capital’s 25-year network with over 400 general partners (GPs), the strategy provides investors with exclusive access to transactional deal flow, of which over 60% is access-restricted.
Schroders Capital’s private equity team invests primarily in direct/co-investments and GP-led secondaries, providing high fee efficiencies for the strategy. As of June 2024, Schroders Capital manages over US$19 billion in private equity investments for clients globally.
Szu Yi Chin, head of wealth and product, Asia-Pacific, at Schroders, says the collaboration will enable the semi-liquid global private equity strategy to be launched on the ADDX platform, delivering a solution for investors seeking portfolio diversification.
“Small and mid-buyouts significantly enhance a private equity portfolio, offering historical resilience during market disruptions and consistently outperforming larger buyouts with lower reliance on leverage,” says Chin.
“Their ability to sell to larger private equity firms augments exit options and reduces dependence on IPOs, contributing to risk diversification and potentially greater returns for investors, making them a strategic component of a robust investment strategy.”
