Schroders Capital has raised more than $2.6bn for direct and co-investments in private equity since January 2022, the firm has revealed.

The total was most recently driven by the €400m close of one of its European buyout funds, Schroders Capital Private Equity Europe Direct III.

Schroders Capital said that this reinforced its position as a “key participant” in small to mid-sized buyouts that have “delivered robust returns” for its clients.

Its Private Equity Europe Direct III fund received support from a range of investors, including both existing clients and new investors, spanning pension funds, endowments, foundations, and family offices.

The firm stated that the fund had seen strong fundraising momentum as clients increasingly looked for the high growth potential that European SMEs can offer, and that its investment approach was focused on delivering business transformations with low financial leverage.

It sold PSS, Olink and Intellera over the past nine months, generating more than eight times in aggregate on invested capital.

The investment into Olink was alongside Summa Equity and the subsequent exit represented the largest liquidity event for Schroders Capital from a private equity investment, resulting in proceeds of more than $325m at exit.

“We are extremely grateful for the continued trust and support from our global investor base,” said Schroders Capital head of European private equity investments, Richard Damming.

“The successful closing of Europe Direct III is a testament to our team's dedication and track record of creating value for our investors.

“We're pleased with the growth we've seen in direct and co-investments. Our strong track record, industry expertise, and global reach position us to continue offering attractive investment opportunities to our clients.”

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