Joint venture investment manager Future Growth Capital (FGC) says it has received regulatory approval to launch the first UK dedicated multi-asset Long-Term Asset Fund (LTAF).

FGC is a new private markets investment manager established by Schroders and Phoenix Group in July.

The new multi-asset LTAF comes along with news of approval for a second LTAF focused on global markets.

FGC says the developments mark a significant milestone in "unlocking" long term investment opportunities, particularly in unlisted assets.

LTAFs are a new type of fund authorised by the FCA designed to enable UK investors with longer-term horizons to invest in illiquid assets.

The two newly-approved LTAFs are the Schroders Future Growth Capital UK Private Assets LTAF and the Schroders Future Growth Capital Global Private Assets LTAF.

The UK LTAF is the first multi-asset LTAF to be dedicated to the UK market.

FGC say it aims to invest across a range of UK private markets assets to generate potentially higher returns. The global LTAF is intended to provide diversified exposure across a broad spectrum of international investment opportunities in private markets.

FGC will also aim to promote the UK’s private markets 'ecosystem' to boost the UK's profile as a destination for international investors.

Paul Forshaw, chief executive, Future Growth Capital, said: “This is a significant step forward for our new business and for UK pension capital. The Schroders “Future Growth Capital” UK Private Assets LTAF will be the first LTAF entirely aligned with the Mansion House Compact, connecting long-term savings directly to the most attractive private UK companies, supporting these exciting businesses to grow and stay in the UK.

“The Schroders “Future Growth Capital” Global Private Assets LTAF will provide long-term savers with the benefits of further diversification across the spectrum of international private assets. Importantly, both LTAFs have the potential to deliver better long-term retirement performance.”

FGC is a new private markets investment manager established by Schroders, a global investment manager with a £77bn, and Phoenix Group, the long-term savings and retirement business with 12m customers.

Subject to regulatory approval, FGC aims to deploy an initial £1bn as part of a planned £10bn-20bn deployment over the next decade into UK and global private markets.

Phoenix Group plans to invest 5% of its relevant savings products on behalf of its policyholders, in line with its Mansion House Compact commitment. Ongoing fundraising will be led by both Schroders and Phoenix Group.

FGC is initially leveraging Schroders Capital’s LTAF investment platform. Schroders has been one of the first companies to launch LTAF funds in the UK although so far few companies have joined them.

This will be the fifth LTAF on Schroders Capital’s platform, having launched the UK’s first in April 2023. Last month, it announced market first after receiving approval for the first LTAF dedicated to UK venture capital and the first UK Wealth LTAF.