Schroders launches ‘semi-liquid’ global fund for private, listed property and debt

Schroders Capital has launched a “semi-liquid” fund that will invest globally in a combination of private and public real estate and debt as part of wider ambitions to “democratise private assets”.

The Global Real Estate Total Return (GRETR) fund will be able to make direct real estate investments as well as minority allocations to listed real estate companies and higher-yielding debt.

It joins three existing semi-liquid private equity funds, launched in 2019, which all provide liquidity windows designed to avoid comprimising returns for other fund investors.

The fund will draw on Schroders Capital’s full global real estate platform and will be managed by Kieran Farrelly, head of real estate solutions, who joined Schroders Capital in 2021 from StepStone Real Estate, and portfolio manager Yim-Mei Liew.

“The GRETR fund will enable a wide range of investors to gain exposure to a selected portfolio of compelling global real estate opportunities through an efficient one-stop solution,” said Farrelly.

“Investors will be able to access the breadth of Schroders Capital’s institutional real estate platform and investment opportunities sourced by Schroders Capital’s entrepreneurial investment teams on the ground in major markets.

“We will be using our proprietary relative value framework and leverage Schroders Capital’s operational excellence to deliver robust investment performance for our clients.”

Sophie van Oosterom, Schroders Capital’s global head of real estate, said the “market timing is excellent to be offering our clients access to this comprehensive real estate investment strategy”.

She added: “The fund is leveraging the best risk-adjusted investment ideas and execution on Schroders Capital’s real estate platform. Current market conditions have reinforced our focus on operational excellence, as we seek to drive long-term sustainable income and value from investments for our clients.

“We manage every investment as a business in itself, optimising services, efficient operations and income, whilst minimising the use of scarce resources, waste and carbon emissions.”

Earlier this month, Schroders Capital announced it has recieved regulatory approval to launch the UK’s first long-term asset fund (LTAF), open-ended investment vehicles designed to enable a broader range of investors to invest in illiquid and private assets, including defined-contribution pension schemes.