Schroders moves into China A-shares and US real estate loans

Fund manager Schroder Investment Management has made a 20% equity investment in A10 Capital, a commercial real estate (CRE) lender based in the USA.

Schroders is investing in A10 Capital, which specialises in mid-market CRE loans, alongside private equity manager Gemspring Capital. As part of the deal, Schroders and A10 have agreed to give Schroders access to A10’s extensive origination network and servicing platform. At the same time, A10 will have the opportunity to significantly diversify its balance sheet funding model. The two firms have a five-year history of collaboration. Schroder CEO North America and co-head of fixed income, Karl Dasher, commented: “A10 has established a technology-driven platform with a strong credit culture that fits well with our investment and corporate culture. Its sourcing and servicing capability will play an important role in our effort to offer more private debt opportunities that meet the growing investor need for compelling fixed income returns while maintaining rigorous credit standards.”

In a separate move, Schroders has launched a China A-Share strategy, investing in a universe of 3,500 onshore China equities. The Schroder ISF China A-Share fund will focus on small to mid-cap stocks with a quality bias.