NEW YORK, 14 August 2024 — Schroders Capital, the $97.3 billion private markets business of Schroders Group, has garnered a £2 billion real estate mandate from Wales Pension Partnership, the pooling collaborative of investments among eight local government pension fund administering authorities in Wales. This is among the single largest wins for the Schroder private assets team and significantly deepens the relationship with WPP, having initially started with the carrying of a £500 million private equity mandate awarded last year.
The new mandate is a reflection of the Schroders Capital commitment to sustainability and long-term value creation. Of this amount, up to £400 million would be invested in projects that bring about a positive impact all over Wales in areas such as local employment, affordable homes, and healthcare. The investment will also target wider UK impact opportunities that are consistent with the WPP ambitions around reaching net zero and social impact objectives. The balance will be going into core real estate sectors around the UK, which include industrial, retail, office spaces, and specialist real estate made up of hotels, self-storage, and student accommodations.
“It is very pleasing to deepen our relationship with WPP,” said Sophie van Oosterom, Global Head of Real Estate at Schroders Capital. “Our clients and investors are increasingly expecting more from their real estate exposure: sustainability, positive impact, and operational excellence are now prerequisites. Our partnership with WPP showcases the strength of our proposition.”
The Schroders Capital Real Estate team provides investment and asset management services around the world. With £22.1 billion under management—invested in a diverse range of global assets—this team is dedicated to the delivery of long-term, sustainable performance across a broad range of geographies, sectors, and investment strategies. The team’s approach puts operational excellence and value optimization at the heart of ensuring our investments continue to meet the evolving and increasingly demanding needs of sophisticated clients.
Schroders head of LGPS business development Paul Myles said: “We are delighted to have secured our second private markets mandate with WPP and are looking forward to working with them. We remain focused on delivering holistic investment solutions to meet the complex needs of our clients on financial return and impact targets.
The deal, therefore, is a good reflection of the value that Schroders Capital is able to deliver across a wide range of real estate and remains firmly committed to sustainable positive social impact.