Private markets – Feature


There has been significant reform to overcome these obstacles including relaxing the 0.75% charge cap imposed on work- place DC default funds, making it easier to include perfor- mance fees which are typically imposed by managers running illiquid asset strategies. The charge cap reform preceded a decision by the Financial Conduct Authority this March to authorise the first Long-Term Asset Fund (LTAF), a move the regulator’s executive director of supervision, policy and competition, Sarah Pritchard, said,


“creates an environment where investors who wish to invest in productive finance assets can more easily do so”.


Market innovation Since then, Schroders, which was the first to launch an LTAF, has bought a second illiquid assets offering to market, along- side Aviva Investors’ Real Estate LTAF which has been seeded with £1.5bn in assets from the company’s life insurance busi- ness. Meanwhile, in May, Blackrock received approval for a


Issue 125 | July-August 2023 | portfolio institutional | 47


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