Schroder Ventures to go it alone

The private equity firm plans to end 17 years of exclusive partnership with Schroders, the investment bank.

Schroder Ventures, the European private equity partnership, will end its longstanding relationship with Schroders, its investment banking partner, later on this year.

In July, Schroder Ventures will stop paying a percentage of the carried interest from its private equity operations to the bank, according to an article in the Times. Henceforth Schroders will be compensated for any direct investments it makes as a limited partner in Schroder Ventures funds.

Schroders will remain a key partner in the private equity partnership through its 12.8 per cent ownership of Schroder Ventures International Investment Trust Plc (SVIIT). SVITT, which is listed on the London Stock Exchange, yesterday announced plans to buy Schroder Ventures London and Schroder Ventures North America to expand operations and respond to what it described as growing demand for vehicles investing in private equity, particularly funds of funds. SVIIT also announced a £12m drop in net assets for the six months to December 31.

In addition to its involvement in SVIIT, the investment bank is understood to be preparing a $500 fund of funds that will invest in a variety of private equity funds.

To amplify the new strategy, Schroder Ventures is also thought to be currently working on a name change.