[Market Insight] Alt Schroder Capital CEO "PE Enables Investment in Various Industries... Profit Opportunities"

Interview with Benjamin Alt, Head of Global Private Equity at Schroder Capital
'Schroder Capital' is the private asset brand of Schroder Group, UK headquarters
"PE investment enhances accessibility to unlisted companies"

"Private Equity can invest in various industries that are difficult to find in the public market. It also has low long-term volatility, making it easy to build a stable portfolio."

Benjamin Alt, Head of Portfolio and Consumer Goods Sector, Schroder Capital Global Private Equity. Photo by Schroder Capital

"PE Investment Increases Accessibility to Unlisted Companies... Also Offers Excellent Returns"

Benjamin Alt, Head of Global Private Equity Portfolio and Consumer Sector at Schroder Capital, explained the advantages of the PE market in an interview with Asia Economy.

Alt stated, "PE investment provides access to unlisted companies, allowing diversification of investment portfolios and capturing investment opportunities aligned with so-called 'megatrends.' Including private equity funds in an investment portfolio enables asset diversification while improving risk-adjusted returns."

He also explained that individual investors can gain various benefits by investing in PE. He said, "The PE market can generate higher returns over the medium to long term compared to the public market. It is easier to achieve superior returns with lower volatility than the public market."

Schroder Capital operates open-ended (Semi-Liquid) private equity funds. In particular, these funds have improved accessibility for individual investors who previously found it difficult to participate. Alt said, "Traditional funds had structures that were difficult for individual investors to access due to high minimum subscription amounts, long investment periods, and challenging liquidity. Open-ended funds provide investors with regular fund establishment and redemption opportunities, making liquidity easier to secure."

The biggest characteristic of Schroder Capital’s open-ended private equity funds is their focus on small and medium-sized enterprises rather than large corporations. The reason is that they can offer superior returns. He said, "Compared to large corporations, small and medium-sized enterprises have growth potential in many areas such as business expansion, mergers and acquisitions (M&A), and improving inefficiencies through specialization. They can utilize a wider variety of exit strategies including financial investors (FI), strategic investors (SI), and initial public offerings (IPO), allowing flexible exit strategies even in situations of high market uncertainty and volatility."

He also expressed great pride in their products. He said, "We believe there are almost no products in the market with a buyout-focused strategy centered on small and medium-sized enterprises similar to Schroder Capital’s open-ended fund strategy. Most other products target medium to large-sized companies."

He emphasized, "Schroder Capital’s open-ended funds offer excellent return potential based on several advantages of the small and medium-sized market such as lower valuations compared to large markets, utilization of diverse exit strategies, and exclusive deal sourcing. Since inception, they have achieved a high annual performance of 15.9%, exceeding the long-term target return of 10-12% per year."

Increased Individual Accessibility to Open-Ended Private Equity Funds... 'Contributing to Investor Growth'

Schroder Capital views healthcare and tech sectors as promising industries. He explained, "Schroder Capital focuses on healthcare and tech sectors while also allocating assets to consumer goods, business services, and industrials. These sectors have innovative growth and development potential influenced by long-term 'megatrends' such as population aging and technological revolutions."

Finally, he emphasized, "Schroder Capital aims to provide excellent returns by investing in the global PE market and achieving superior performance, building long-term partnerships with investors. Through diverse strategies and investment structures, we hope to become a company that contributes to investors’ growth as both an advisor and partner."

Headquartered in the UK, Schroder Group manages $961 billion (approximately 1,332 trillion KRW) in assets worldwide. It is a global asset management firm with over 300 offices in more than 30 countries. Under Schroder Group is the private asset brand 'Schroder Capital.' Schroder Capital is a private asset specialist managing private markets and customized client solutions, focusing on active investments such as management buyouts. The private asset division recorded an average internal rate of return (IRR) of 18% annually from 2010 to 2022.

Benjamin Alt serves as Head of Global Private Equity Portfolio and Consumer Sector at Schroder Capital.