Schroders to offer private equity FoF

The private banking operation of Schroders intends to offer both its private banking and institutional clients a private equity fund of funds [FoF] in early 2001.

In a move that reflects the increasing popularity amongst European institutional and high net worth individual investors for the FoF, Schroder & Co, the private banking arm of Schroders PLC is building on an already close relationship with private equity house Schroder Ventures.

Personnel from both the bank’s own asset management team and from Schroder Ventures are working on the FoF.

The private banking operation has already been offering selected clients access to Schroder Ventures current E3.5bn European fund via a E100m tranche that had been expressly allocated to high net worth individuals.

Andrew Sykes, chairman of Schroder & Co, said: “Schroder is in the process of designing a fund of funds, which in this instance is a fund that will invest in top quartile private equity managers, predominantly in the Europe and the US.”

Sykes added: “There is a big difference between the best performance and the median. There is a far greater dispersion in private equity than you find in other asset classes.”

PEO has taken a close look at the FoF in a special feature currently on the homepage. To get a better picture of how this investment product works take a look.