Private Equity

Tapping higher-growth companies

Putting capital to work

Investing in private equity opens up a broader universe of companies than those listed on public stock exchanges. Many early stage and growth-orientated companies can only be accessed through private equity, given the high costs associated with public listings.

Private equity investment strategies are typically structured around the following:

Buy-out strategies

A change in the ownership of an established company to facilitate a change in management, a new strategic direction, a change in capital structure or to drive improved operational performance.

Venture strategies

Seed money and funding for start-up or early stage companies that are at the beginning of their journey to commercialise their products and services.

Growth strategies

Investing in companies that are more advanced in the commercialisation of their products and services but require high levels of investment to achieve their full potential.

Turnaround strategies

Investing in companies that have run into operating difficulties in order to implement significant change to management, corporate structure and operations to become profitable.

The case for private equity

Private equity investments can provide attractive returns that have a low correlation to major stock markets.

The potential benefits of private equity investing include:

  • Private ownership enables a greater influence on management and the strategic direction of a company to ensure investor objectives are met.
  • Long-term nature of investment helps to ensure better alignment of interests between investors and management, resulting in better outcomes.
  • Potential for enhanced investment returns over the long term in exchange for investing in less liquid assets.

Other Private Asset opportunities at Schroders

Risk warnings
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
Alternatives can be more volatile than shares and bonds, and it may be harder to cash in the investment at short notice. Private Assets offer less liquidity than publicly listed securities. Please note: this is not a complete list of risks but rather an overview of some risks.

Contact Schroders

Schroders is a world-class asset manager operating from 38 locations across Europe, the Americas, Asia, the Middle East and Africa.

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