Schroders (SDR) CMD 2025 summary

Strategic vision and growth targets

• Targeting £20 billion in net new business and aiming to grow AUM from £73 billion to £100 billion by end-2027, assuming 4% annual market growth and stable FX rates.

• Focus on scaling as a mid-market specialist in high-growth thematics, leveraging a solutions-driven approach and innovation in wealth and DC segments.

• Growth strategy built on three catalysts: reaching critical size thresholds, activating a specialist fundraising engine, and capitalizing on group strengths such as wealth footprint and public-private continuum.

• Emphasis on profitability, scalability, and locked-in revenues, with a 12-year average asset longevity and margins in the mid-50s to 62bps.

• Significant value creation expected from carried interest and stable, long-term client relationships.

Business segment highlights

• Private Equity: £15.6bn AUM, strong mid-market focus, 14% 3-year revenue CAGR, and early mover in wealth channel with evergreen funds.

• Infrastructure: £10.1bn AUM, second largest global energy transition specialist, vertically integrated model, and expanding into higher-returning strategies.

• Real Estate: £21bn AUM, pivoting to higher-margin thematic strategies, launching semi-liquid products for wealth, and maintaining leadership in sustainability.

• Private Debt and Credit Alternatives: £26.1bn AUM, diversified across asset-based finance, insurance-linked securities, and infrastructure debt, with 13% compound annual AUM growth since 2020.

• Built a 40-person dedicated business development team and committed up to £500 million in seed capital and co-investment.

Market positioning and competitive advantages

• Recognized as a top 10 listed European alternative manager by AUM, with strong brand in wealth and private markets, and ranking among the largest evergreen fund managers in Europe.

• Differentiation through specialization in high-growth thematics, solutions orientation, and ability to serve both institutional and wealth clients.

• Ability to deliver bespoke portfolios and access points, including closed-end funds, evergreens, and mandates, catering to diverse client needs.

• Demonstrated resilience and growth despite industry-wide fundraising headwinds, with fundraising rates of 15%-17% of starting AUM annually.

• Positioned to benefit from anticipated rapid growth in private markets over the coming years.