Hargreaves Lansdown and Schroders Capital are set to give UK retail investors access to private markets for the first time through self-invested personal pensions (SIPPs), according to Bloomberg.

From September 15, the platform will offer two Schroders-managed long-term asset funds: a $2.5bn private equity fund investing in small and mid-sized companies worldwide, and an energy infrastructure fund holding assets such as wind and solar farms.

The initiative marks the first time private market funds will be available to UK savers via SIPPs, which offer tax relief on contributions as well as exemptions from capital gains and dividend taxes.

“Our business has been built upon the mission to democratize investing – and we see this as a milestone for the accessibility of private markets for individual investors in the UK,” said Emma Wall, head of platform investments at Hargreaves Lansdown. “Private markets can play an important role in delivering unique growth opportunities beyond what is typically available in public markets.”

Investor appetite for private assets has been rising as more companies stay private for longer and alternatives such as private equity and infrastructure gain traction. 

While regulators remain cautious due to liquidity and transparency concerns, Hargreaves Lansdown’s partnership with Schroders highlights the growing push to open alternative investments to a wider investor base.

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