Linklaters has advised Schroders plc on the establishment of a joint venture with Phoenix Group Holdings plc, creating a new private markets investment manager, Future Growth Capital (“FGC“), which will provide long-term financing for innovative, growing businesses, helping to create jobs and boost the UK economy.
FGC will be the first private market investment manager to be established in the UK to support the objectives of the UK’s Mansion House Compact, unlocking investment opportunities in private markets for millions of new pension savers to benefit from the diversification and investment return opportunities that unlisted assets can offer.
A key focus of FGC will be investing on behalf of pension savers to grow the UK’s companies of the future. As a major investor in the UK’s private markets, it will help to develop the UK private market ecosystem and to promote the UK as an attractive private market investment destination.
FGC aims to deploy £10-20bn over the next 10 years into UK and global private markets. Phoenix Group has made an initial £1bn commitment, with up to £2.5bn over three years and intends to invest 5% of its relevant savings products on behalf of its policyholders, in line with its Mansion House Compact commitment. This will provide scale at inception, with ongoing fundraising led by both Schroders and Phoenix Group.
The multijurisdictional Linklaters team was led by Corporate partner Tracey Lochhead, with Georgina Kon (TMT), Raza Naeem (Financial Regulation) and Sam Lintonbon (Tax).
They were supported by Corporate managing associates Graeme Finnie and Piya Haria with associates Elizabeth Lee and Millie Sparrow; TMT managing associate Tatum Govender with associate Matthew King; and Financial Regulation managing associate Frances Hodgkins with associate Mihika Upadhyaya.
Counsel Liliane Gam, with managing associates Yuxin Weirich (Düsseldorf) and Laura Pinilla (Madrid) and associate Sudheera Koduru advised on antitrust matters. Counsel Simon Kerr-Davis with associate Julie Toal advised on employment matters.
