Stmnt re SVIITAnnouncement
Schroders PLC
19 March 2001
SCHRODERS PLC AND SCHRODER VENTURES
RESTRUCTURE PRIVATE EQUITY ACTIVITIES
It has been announced today that Schroder Ventures International Investment
Trust ('SVIIT') will seek the approval of its shareholders to enlarge its
operations. This will include the acquisition of two companies, bringing a
team of 10 professionals from Schroder Ventures into SVIIT with the ability to
build a specialist financial advisory business. Members of this team were
involved in the structuring and listing of SVIIT on the London Stock Exchange
in May 1996 and have, since then, advised and assisted SVIIT's board on
investment opportunities.
Schroders plc, a holder of 12.8% of SVIIT, and Schroder Ventures are fully in
support of this proposal and Schroders plc has indicated that it will vote in
favour of it. Schroders plc has also announced its intention to expand its
alternative investment operations and is preparing, in concert with the new
team joining SVIIT, a private equity fund of funds for launch during the
second quarter of 2001. Schroders plc and SVIIT intend to build upon this
co-operation.
SVIIT also intends to enter into services agreements to provide a range of
services to Schroder Ventures, in whose funds it is a major investor.
Schroders plc has a significant interest in funds advised by Schroder
Ventures, both through its shareholding in SVIIT, and through a co-investment
vehicle which is jointly owned with Schroder Ventures. Schroders plc also
receives a portion of the carried interest in all existing Schroder Ventures
funds, which will continue until 2010. From July 2002, any carried interest on
new funds will be agreed on a fund-by-fund basis.
Schroder Ventures is an international association of independent entities,
each owned by the individual partners of those businesses. These entities are
Schroder Ventures Europe (comprising teams in London, Frankfurt, Milan and
Paris), Asia (comprising teams in Singapore, Hong Kong and Mumbai), Japan
(Tokyo), Canada (Montreal) and the United States (New York), together with a
Life Sciences Group (comprising teams in Boston and London). Reflecting the
evolution of the relationships between Schroders plc, SVIIT and Schroder
Ventures, the Schroder Ventures Group will be reviewing its branding
architecture in due course.
Andrew Sykes, Head of Alternative Investments at Schroders plc, commented:
'These developments reflect the growing importance of alternative assets
(including private equity) as an investment for pension funds and high net
worth individuals and provide a structure within which Schroders plc and
Schroder Ventures, working with SVIIT, can continue the successful expansion
of their businesses in this field.'
ENDS
For further information please contact:
Julian Samways
Head of Corporate Communications, Schroders plc 020 7658 6166
Damon Buffini
Schroder Ventures 020 7632 1045
Schroders plc
Schroders is a leading international asset management group, with nearly 200
years experience and with over £132 billion funds under management.
Apart from managing investments on behalf of pension funds, government bodies,
charities, corporations, family groups and high net worth individuals
throughout the world, Schroders is a leading manager of unit trusts and other
mutual funds. Schroders offers investments across all major asset classes in
developed and emerging countries; public equities and debt, money markets,
private equities and property.
Schroders employs 3,000 staff world-wide through 41 offices in 29 countries
and territories.
Further information about Schroders is located on the following sites:
Corporate & Institutional: www.schroders.com
Retail & Investment Funds: www.schroders.co.uk
Mutual & Off-shore Funds: www.schroders.lu
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