Leading global asset manager Schroders has announced a partnership with ADDX, a private markets and alternative investment platform, broadening access for accredited investors with a semi-liquid global private equity strategy.
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The collaboration will provide investors with unique access to a differentiated private equity opportunity, with a focus on the lower mid-market segment where market inefficiencies can be exploited.
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This approach enables the Schroders Capital private equity investment team to tap into a larger opportunity set with attractive entry prices, transformational growth opportunities through value creation and low reliance on financial engineering.
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), this extensive GP network provides exclusive access to transactional deal flow for investors, where over 60% of the network is access-restricted. The Schroders Capital 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 & Product, Asia Pacific, Schroders, said:
“As we strive to pioneer innovative private asset solutions and democratise private markets for private clients, we recognise the growing importance for investors looking to access non-listed companies with attractive growth potential. Our collaboration with ADDX enables the launch of Schroders Capital’s semi-liquid global private equity strategy on their platform, delivering a compelling solution for sophisticated 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. 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.”
Inmoo Hwang, Co-Founder and Group CFO, ADDX, said:
“Our partnership brings together the strengths of a trusted investment manager with the innovation of a digital wealth platform, creating a powerful synergy to offer investors a smarter, more accessible investment solution to help them reach their financial goals.”
About Schroders
Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £773.7 billion (€912.6 billion; $978.1 billion) of assets under management at 30 June 2024. As a UK-listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroders family continues to be a significant shareholder, holding approximately 44% of the issued share capital.
Schroders’ success can be attributed to its diverse business model spanning different asset classes, client type and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management and Schroders Capital, which focuses on private markets including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.
Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient business with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high-net-worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers and online platforms.
About ADDX
ADDX is an investment platform headquartered in Singapore that offers accredited investors a space to build a private markets and alternatives portfolio for as low as USD 5,000. With ADDX, investors can access high quality alternative investments across private equity, private credit, hedge funds, structured products, cash alternatives and more, using a convenient and user-friendly app and web platform. ADDX has raised a total of US$140 million in funding since its inception in 2017. Its shareholders include Singapore Exchange (SGX), the Stock Exchange of Thailand, Temasek subsidiary Heliconia Capital, the Development Bank of Japan, UOB, Hamilton Lane, Tokai Tokyo Financial Holdings and KB Securities, a subsidiary of Korea’s largest banking group KB Financial Group.
ADDX has been approved by the Monetary Authority of Singapore as a recognised market operator. It also has a capital markets services license to deal in securities and collective investment schemes as well as to provide custodial services. It currently serves individual accredited investors from over 50 countries spanning Asia Pacific, Europe, Middle East and the Americas (except the US). ADDX also serves wealth managers, family offices and corporate investors through its institutional service, ADDX Advantage.
