Schroders plots private debt growth

By Moriah Costa on Wednesday 2 August 2017

Alternative Lending

The asset manager has appointed a new head of private assets.

Asset manager Schroders is prioritising its private markets business as its assets under management pass £400bn.

The company appointed Alan Cauberghs as head of private assets as it consolidates its private market business. He was formerly a senior investment director for fixed income at the firm.

‘We believe private assets is an asset class with great growth potential and by combining our suite of investment solutions we can offer our clients access to an alternative asset class allowing greater diversification and better returns,” Cauberghs said. “The integrated approach will enable us to engage with our clients in order to achieve specific, well defined outcomes.”

Cauberghs will also oversee Adveq, a £7bn private equity company the firm acquired in April.

Peter Harrison, Group Chief Executive of Schroders said: “Our private assets businesses share many common factors and by drawing together our activities, we will ensure that we make the most of their growth potential in this strategically important area for the firm.”

The company announced on an earnings call that it is also investing in robotics to automate routine tasks “supporting the ability to build scale and releasing our people to focus on supporting business growth,” Richard Keers, chief financial officer at Schroders, said on an earnings call.

Profits at the company rose by 21 per cent to £342.8m, compared £282.3m during the first half of 2016. Assets under management also increased to £418.2bn, compared to £343.8bn in June 2016.

While inflows were positive, there was a decline of £1.2bn from its retail business during the six months to the end of June, driven by a £5.8bn withdrawal from a US intermediary. 

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