Blackrock to launch LTAF

Blackrock has received FCA approval for the launch of its diversified alternative strategies LTAF.

It will be one of four authorised LTAFs on the market, alongside Schroders’ Capital Climate+ and Greencoat; and the Aviva Investors Real Estate Active LTAF.

The fund is aimed at providing DC pension schemes with access to private markets, investing in asset classes such as infrastructure, private credit, private equity and real estate. The firm would like to extend this offering to the UK retail market in future.

The Drawdown previously explored the main blockers deterring DC pensions from investing in private markets, including the charge cap rules, liquidity management and lack of adequate operational setup from GPs. The full piece can be found here.

LTAFs – a timeline
May 2021 – The FCA consults on creation of the LTAF, with the aim of helping DC pension schemes to access the private markets.

October 2021 – The FCA goes ahead with the proposal to create the LTAF structure.

August 2022 – The FCA consults on the open-ended fund structure, proposing draft rules to offer the fund to retail audiences.

March 2023 – Schroders Capital launches its Capital Climate+ LTAF.

April 2023 – Carried interest is lifted from the charge cap, previously one of the barriers to DC pension schemes accessing private markets.

May 2023 – Schroders Capital launches the Schroders Greencoat LTAF, the second of the firm’s LTAF offerings. This happens shortly after Aviva Investors launches its first LTAF, investing in real estate.