(Bloomberg) -- Schroders Plc will focus its first long-term asset fund on private or illiquid investments that support the transition to net zero. 

The Schroders Capital Climate+ LTAF will invest in infrastructure, real estate. private equity, natural capital and biodiversity-focused assets, according to a statement Wednesday. It is the UK’s first so-called Long Term Asset Fund — a new regulatory structure designed to give sophisticated investors access to illiquid assets.

Schroders, the UK’s largest standalone asset manager, won regulatory approval to set up the UK’s first LTAF earlier this month. The firm is among a growing group of asset managers looking to push deeper into private markets to compete against low-cost index fund providers that have eroded their businesses. 

The £737 billion ($908 billion) asset manager, will primarily target defined contribution pensions, as well as other eligible investors. UK master trust Cushon, a multi-employer pension scheme, is the fund’s founding investor, according to the statement. 

©2023 Bloomberg L.P.