Fulcrum Asset Management is the latest firm to receive approval to launch a Long-Term Asset Fund (LTAF).

The LTAF is a Financial Conduct Authority (FCA)-approved structure which was opened up to professional and retail investors last year to encourage private investment into illiquid assets such as credit or real assets.

The WS Fulcrum Diversified Private Markets LTAF was authorised with effect from 13 March, according to the FCA’s financial services register.

Fulcrum joins Schroders, Aviva and BlackRock who have already launched LTAFs.

Fulcrum was founded in 2004 and has £6.4bn in assets under management as at 31 January 2024. It invests across all major asset classes and geographies.

Read more: New long-term funds set to democratise private credit

Alternative Credit Investor understands that Fulcrum’s LTAF is a multi-asset solution, covering private equity, real estate, infrastructure, natural resources and alternative credit.

It is thought that Fulcrum sees its LTAF appealing to defined contribution (DC) pension schemes.

As Alternative Credit Investor previously reported, industry stakeholders see great potential in LTAFs opening up the private credit sector to DC pension money.

“While bigger pension schemes were already moving to illiquid assets, the LTAF structure makes it easier,” said Joe Dabrowski, deputy director – policy at the Pensions and Lifetime Savings Association.

“It’s a package you can buy off the shelf. It creates more options, as it’s a wrapper approved by the FCA that can work with platforms.”

LTAFs will be eligible to be held within the Innovative Finance ISA wrapper from April 2024, as part of a shake-up of the ISA market confirmed in last November’s Autumn Statement.

LTAFs could not be held in an ISA previously because ISA assets needed to have the ability to be sold within 30 days.