LGT closes €429m mid-market FoF

The latest fund close is the firm’s third this year, representing $4.1bn raised across three strategies.

Funds of funds manager LGT Capital Partners has held a €429 million final close on its second European mid-market vehicle. It began marketing in 2008 with a target range of €400 million to €600 million.

A spokesperson declined to provide specific details as to its level of deployment, save to say the firm has been busily investing from all three funds it has closed this year.

The firm’s “Crown Europe Middle Market II” will make both primary and secondary commitments, the latter of which may comprise up to 20 percent of the fund’s investments, according to 2008 documents from the London Borough of Hillingdon Pension Fund, which recommended a £3 million commitment.

The pension documents noted LGT intended to invest in roughly 20-25 partnerships with the mid-market fund, whose objective is to outperform public markets by at least 5 percent.

LGT also closed “Crown Premium IV”, a €562 million German-focused fund of funds, earlier this year, as well as a $1.2 billion secondary vehicle, bringing its total capital raised in the past two years or so to roughly $4.1 billion.

The firm, which does not use a placement agent, attributed its ability to raise such a substantial amount during a difficult fundraising environment to a wide range of product offerings supported by a global infrastructure, coupled with the performance of its current funds.

“The fact that our investment programs have weathered the global financial crisis well has been a very important factor in our recent fundraising successes,” partner Ivan Vercoutere said in a statement.

Specific fund performance information could not be confirmed at press time.