UK Retail Investors Gain Access to Private Market Funds via Schroders and Hargreaves Lansdown
Hargreaves Lansdown is set to become the first UK retail investment platform to offer long-term asset funds (LTAFs) through its self-invested personal pension (SIPP), in collaboration with Schroders Capital.
The initiative, launching the week of 15 September, represents a major step in opening private markets to everyday investors.
Traditionally, private equity, structure, and private debt have been reserved for institutional investors or high-net-worth individuals.
LTAFs, introduced by the Financial Conduct Authority( FCA) in 2021, were designed to change this.
By offering a regulated frame for investing in long-term, lower liquid means, LTAFs aim to direct capital toward sectors similar to energy transition structures while furnishing diversification opportunities for investors comfortable with illiquidity.
Hargreaves Lansdown and Schroders collaborate on double LTAF offeringhttps://t.co/IbrPmy1Ham pic.twitter.com/xgunyo2k3l
— Investment Week (@InvestmentWeek) September 8, 2025
Schroders Funds Now Available on Hargreaves Platform
Through this partnership, two Schroders-managed funds will be accessible to eligible Hargreaves clients.
“One invests globally in small and mid-sized private companies, with a tilt towards technology and healthcare, while the other focuses on renewable energy and related infrastructure, spanning wind farms, solar parks, and green hydrogen projects,” said a spokesperson.
Both funds will be offered in newly launched discounted share classes, with a minimum entry of £10,000.
This move is part of Hargreaves Lansdown wider ambition to provide clients with advanced investment opportunities.
Last year, the platform introduced a digital service for venture capital trusts. Now, by entering private markets, a sector historically dominated by institutions, it is testing whether retail investors are ready for alternative assets.
Hargreaves serves over 1.8 million clients, making this a significant trial for the appetite of UK savers.
The Risk and Reward of LTAFs
Private markets have historically delivered higher long-term returns than listed equities and bonds. But they carry greater risks and far lower liquidity.
Unlike diurnal-traded collective finances or ETFs, LTAFs generally allow redemptions only yearly or daily, with notice periods of at least 90 days. This structure protects underlying portfolios from sudden outflows.
The FCA has cautioned that these products are not suitable for the mass retail market. Access is limited to high-net-worth or sophisticated investors capable of understanding the risks and committing capital for the long term.
From April 2026, LTAFs are expected to be eligible within stocks and shares ISAs, potentially widening their reach.
Opportunity for Schroders Capital
For Schroders Capital, which manages $111bn in private market strategies globally, the partnership with Hargreaves provides a chance to offer its semi-liquid funds to a broader investor base.
Its private equity fund already holds more than $2.5bn across 270 companies, while its energy infrastructure fund covers 180 assets in Europe, North America, and Asia.
The timing is critical. With public equities volatile and government bonds yielding little, investors are increasingly seeking alternative returns. Institutional interest in private assets has grown steadily over the past two decades.
Extending these options to retail investors could support long-term projects, including the UK’s energy transition.
Hargreaves’ strategy of embedding LTAFs within SIPPs, long-term retirement vehicles, aims to align patient capital with illiquid assets.
“If successful, it could pave the way for broader adoption of private markets among UK retail savers,” analysts say.
