Hargreaves Lansdown Expands SIPP Access to Private Market Funds

Highlights

• Hargreaves Lansdown PLC (LSE:HL) becomes the first UK platform to offer long-term asset funds within a self-invested personal pension.

• Two Schroders Capital funds focused on private equity and energy transition infrastructure will be available from September.

• Long-term asset funds are designed for illiquid investments such as private equity, infrastructure, and venture capital within the SIPP wrapper.

Hargreaves Lansdown PLC (LSE:HL), the UK’s largest retail investment platform, announced a significant expansion in its self-invested personal pension (SIPP) offerings. The platform will introduce Schroders Capital long-term asset funds (LTAFs) to eligible clients, enabling access to private market investments previously reserved for institutional and professional participants. Hargreaves Lansdown is listed on the FTSE 100, representing the largest companies by market capitalisation on the London Stock Exchange.

The addition of these private market funds within the SIPP structure highlights the platform’s strategic focus on widening the range of long-term investment products available to retail clients while maintaining regulated and structured access mechanisms.

What are long-term asset funds (LTAFs)?

Long-term asset funds, or LTAFs, are a category of authorised open-ended investment vehicles designed to hold assets that are typically less liquid than conventional public market instruments. These include private equity, infrastructure projects, private debt, real estate, and venture capital.

The structure of LTAFs allows investors to access these asset classes while implementing trading restrictions to account for liquidity limitations. Redemption is typically allowed at defined intervals, often monthly or quarterly, with prior notice required to facilitate orderly processing of assets.

By incorporating LTAFs into a SIPP framework, platforms like Hargreaves Lansdown provide retail clients with a mechanism to gain exposure to private markets under regulated conditions. This integration balances accessibility with operational safeguards.

Which Schroders Capital funds are being added to SIPPs?

Hargreaves Lansdown will make two Schroders Capital funds available within the SIPP structure:

1. Schroders Capital Global Private Equity LTAF
   This fund is part of Schroders’ semi-liquid private equity offerings, which invest across a diversified portfolio of global companies. The vehicle provides exposure to private equity markets that have historically been accessible primarily to institutional participants.

2. Schroders Capital Global Energy Infrastructure LTAF
   This fund targets investments in renewable power projects and broader energy transition infrastructure. Its purpose is to provide access to private market assets supporting the global shift towards sustainable energy solutions.

Both funds are structured to align with regulatory requirements for long-term asset funds, including liquidity provisions and defined trading intervals.

How will LTAFs be integrated into the SIPP platform?

The SIPP wrapper enables retail clients to access private market assets while retaining the benefits of a tax-advantaged pension structure. Hargreaves Lansdown has implemented operational and regulatory controls to ensure that access to LTAFs aligns with the platform’s framework for retail clients.

The platform has collaborated with legal and compliance teams to ensure that the online journey for accessing LTAFs is navigable, secure, and compliant. This includes implementing restrictions and controls specific to mass-market retail clients engaging with less liquid investment products.

The integration is designed to maintain transparency and clarity around trading intervals, redemption procedures, and overall fund management.

What is the significance of this expansion for Hargreaves Lansdown?

Hargreaves Lansdown’s introduction of LTAFs within SIPPs represents a strategic step to broaden the scope of available investment products. By offering access to private equity and infrastructure investments within a regulated pension structure, the platform strengthens its position as a comprehensive provider of long-term investment solutions.

This initiative reflects the company’s commitment to providing a diversified range of options for retail clients and aligns with broader trends in UK pensions towards incorporating illiquid assets under controlled and regulated frameworks. The Schroders Capital Global Private Equity LTAF feeds into a larger semi-liquid private equity fund that was launched in 2019. This fund is invested across a wide range of companies worldwide, providing broad exposure to global private equity markets.

The vehicle’s structure allows for semi-liquid access, balancing the benefits of private equity exposure with the operational requirements of trading intervals and notice periods. The fund’s design is intended to accommodate retail clients within the SIPP while maintaining adherence to regulatory standards.

What role does the Global Energy Infrastructure LTAF play?

The Schroders Capital Global Energy Infrastructure LTAF focuses on renewable energy and infrastructure projects supporting the energy transition. Investments may include wind, solar, and other renewable power projects, as well as related infrastructure assets.

The fund’s structure enables retail clients to participate in private market opportunities that align with sustainability trends. By embedding the fund within a SIPP, Hargreaves Lansdown ensures access is structured, regulated, and integrated into long-term retirement planning strategies.

How does Hargreaves Lansdown ensure compliance and accessibility?

The platform has emphasised the importance of regulatory compliance and investor protection. Legal and compliance teams have been involved in designing the online platform experience to meet regulatory standards and incorporate appropriate controls.

Key elements include:

• Defined trading intervals for fund subscriptions and redemptions

• Advance notice requirements for redemptions

• Implementation of restrictions suitable for mass-market retail clients

• Clear communication of fund characteristics and operational processes

These measures are designed to maintain the integrity of the SIPP platform while enabling broader access to private market funds.

What is the regulatory landscape for LTAFs and SIPPs?

Long-term asset funds have been authorised as a category of open-ended investment vehicles in the UK to facilitate access to illiquid assets for retail clients under controlled conditions. LTAFs are already eligible for inclusion in SIPPs and innovative finance ISAs, with expectations for broader eligibility in stocks and shares ISAs in the future.

The regulatory framework requires structured redemption intervals, notice periods, and operational controls to protect retail participants from liquidity mismatches inherent in private market investments. Hargreaves Lansdown’s implementation reflects these requirements, ensuring compliance while expanding product offerings.

How does this move fit within the FTSE 100 landscape?

Hargreaves Lansdown (LSE:HL) is a constituent of the FTSE 100, representing large-cap UK-listed companies. Its strategy to introduce LTAFs within the SIPP structure reflects a trend among leading platforms and financial service providers to expand access to diverse asset classes.

Within the broader FTSE 100 and FTSE 350 context, this approach illustrates how large, regulated UK companies are innovating product offerings while maintaining compliance and operational rigor.

Which clients are eligible for the LTAFs within SIPPs?

Access to the Schroders Capital LTAFs within the SIPP platform is restricted to clients meeting eligibility criteria set by Hargreaves Lansdown. Eligibility ensures alignment with regulatory guidance and operational controls, enabling safe participation in less liquid investment opportunities.

Clients can engage with the LTAFs through the platform’s online interface, subject to trading intervals and redemption notice periods. The structure provides clarity around investment mechanics and operational timelines.

What are the implications for long-term retirement planning?

By integrating LTAFs into SIPPs, Hargreaves Lansdown expands the universe of available asset classes for retirement planning. Private equity and infrastructure investments within a structured pension wrapper enable diversification beyond traditional public market instruments.

The structured access, including defined trading intervals and notice periods, ensures that these assets are incorporated into long-term planning frameworks without compromising regulatory compliance or operational efficiency.

How does Hargreaves Lansdown support client understanding of LTAFs?

The platform provides guidance, tools, and information to ensure clients understand the characteristics of LTAFs. Clear communication around trading intervals, redemption requirements, fund focus areas, and operational mechanics is central to the platform’s approach.

This educational support complements regulatory compliance, ensuring clients are aware of the unique attributes of private market investments embedded within SIPPs.

What are the broader market trends influencing this initiative?

The UK retail investment landscape is increasingly focused on expanding access to alternative and private market asset classes. Platforms such as Hargreaves Lansdown are integrating LTAFs, reflecting a regulatory environment that allows structured access to illiquid investments while maintaining investor protection.

This trend is evident across both large-cap constituents of the FTSE 100 and mid-cap companies in the FTSE 350, as firms adapt their product offerings to meet evolving market demand for diversified, long-term investment options.