UK’s largest DIY investment platform brings unlisted assets to retail savers via SIPP, with LTAFs in private equity and infrastructure — ISA access slated for April 2026.
Hargreaves Lansdown will begin offering ordinary savers access to private markets for the first time through a partnership with Schroders Capital, in a move that could reshape how UK investors build long‑term portfolios. The Bristol‑based broker, the country’s largest direct‑to‑investor platform, said customers will be able to allocate to unlisted assets through their self‑invested personal pensions (SIPPs), initially via two Long‑Term Asset Funds (LTAFs) focused on private equity and energy infrastructure. The launch is due to begin next week, with a minimum investment expected at £10,000 and redemption windows governed by mandatory notice periods.
For much of the past decade, the growth stories that have dominated global markets have been seeded off‑exchange — from software and life sciences to clean‑energy infrastructure. Yet access for individuals has been limited, typically channeled through listed investment trusts or higher‑threshold vehicles aimed at wealthier clients. Hargreaves Lansdown’s tie‑up with Schroders Capital — the private markets arm of Schroders — represents one of the clearest attempts yet to mainstream exposure to these illiquid assets on a mass‑market retail platform.
At the core of the offer are LTAFs, a UK fund structure introduced by the Financial Conduct Authority to house less liquid holdings such as private equity, venture capital, infrastructure and private credit. In contrast to daily‑dealt funds, LTAFs limit dealing to no more than monthly and require investors to give at least 90 days’ notice before they can withdraw. Those rules are designed to better match the time it takes to buy and sell underlying assets with the liquidity promised to investors — and to avoid the kind of crunch that has afflicted open‑ended property and fixed income funds in recent years.
Hargreaves Lansdown says the LTAFs available at launch will target two distinct sleeves of the private markets universe. One vehicle will aim to provide diversified exposure to buyouts and growth capital, backing established managers and co‑investments that seek to improve companies outside public markets before eventual sale or listing. The second will focus on energy transition infrastructure, including assets such as renewable generation and grid‑adjacent projects — areas where stable, long‑dated cash flows can sit comfortably alongside pension savings with multi‑decade horizons.
The move lands at a self‑reflective moment for London’s capital markets. UK equity funds have suffered persistent outflows and flotations have been scarce this year, intensifying pressure on both asset managers and platforms to broaden the investable opportunity set. Policymakers, for their part, have flagged private assets as a lever for mobilising retirement savings into productive finance — channelling capital towards high‑growth businesses and nationally significant infrastructure while aiming to improve long‑term outcomes for savers.
Crucially for household investors, the initial route on Hargreaves Lansdown will be through tax‑efficient wrappers. SIPP eligibility at launch means contributions can benefit from tax relief and grow free of capital gains and dividend taxes within the pension. The government has also confirmed that LTAFs will become eligible holdings in stocks‑and‑shares ISAs from April 2026, a change that could materially enlarge the potential retail audience. In time, that would place private‑market building blocks alongside mainstream funds and ETFs in two of the UK’s most widely used savings vehicles.
Yet the expansion comes with caveats. Illiquidity is not a footnote but the defining feature of private markets. Investors may need to wait months to redeem and, depending on the fund, face lock‑ups or gating during market stress. Valuations are marked less frequently than listed securities and may lag turning points. Fees are typically higher, reflecting specialist sourcing and ongoing operational work in portfolio companies and projects. The potential compensation is an illiquidity premium — historically stronger returns and diversification — but outcomes vary widely between managers and strategies.
Schroders Capital, which oversees private assets across private equity, infrastructure, real estate and private debt, has been expanding the range of vehicles designed for individual investors, including evergreen structures with periodic dealing. For Hargreaves Lansdown clients, the presence of a household‑name manager may prove key to confidence: private assets demand lengthy time horizons, disciplined risk management and careful sizing within a broader portfolio.
To mitigate risk, platforms and managers are expected to emphasise suitability filters, disclosure and education. LTAFs marketed to retail investors come with additional safeguards, including clear summaries of risks, liquidity terms and costs. Hargreaves Lansdown has long positioned itself as an educator for first‑time and DIY investors; bringing private assets into the mix will test how effectively that model can translate complex structures into plain‑English expectations about access and performance.
For practical purposes, investors should treat LTAFs as long‑term holdings rather than tactical trades. The underlying vehicles often commit capital gradually, draw down money over time and distribute returns irregularly through realisations or income. That profile can make them a natural complement to pensions, where the investment horizon spans decades and cash‑flow needs are predictable. But it also means allocations should be sized modestly within an overall plan that includes liquid buffers for short‑term needs.
The industry will watch uptake closely. Earlier attempts to open private markets to retail savers — from listed private equity trusts to fractionalised feeder funds — have waxed and waned with market cycles, fees and discounts to asset value. The LTAF is an explicit attempt to learn from those experiences, balancing access with liquidity discipline. If Hargreaves Lansdown can convert its large client base into sustained, suitably small allocations, it could help normalise the idea that pensions include not just public markets but a measured slice of private assets too.
The timing also speaks to a broader re‑rating of what ‘public versus private’ means. With fewer companies listing early and many staying private for longer, investors who stick solely to stock markets risk missing a swath of corporate value creation. Conversely, private assets are not a panacea: returns are dispersive, manager selection is paramount and transparency can be limited. For DIY investors, the new access route is an option — not an obligation — and comes with responsibilities to understand liquidity, costs and time horizon.
As the offer rolls out, attention will turn to the practicalities: onboarding flows, minimums and dealing calendars; where the LTAFs sit on the platform’s fund menus; and how performance reporting will communicate the difference between ‘steady NAVs’ and true underlying volatility. Regulators will monitor marketing and governance closely, mindful of the lessons from other parts of the funds industry. And advisers will weigh when, and for whom, private assets make sense within pensions and eventually ISAs.
For long‑term savers willing to trade daily access for potential diversification and enhanced returns, the Hargreaves Lansdown–Schroders Capital launch will be welcome. For others, it may mark the start of a learning curve. Either way, the UK’s largest DIY platform moving decisively into private assets is a signal: the walls around private markets are lowering, and the mainstream is being invited to step through — slowly, with eyes open.
Sources: Company statements and industry briefings; FCA materials on the Long‑Term Asset Fund; UK government announcements on ISA eligibility for LTAFs from April 2026; and reporting from reputable financial media as of September 8, 2025.
