LGT holds €392m final close

LGT Capital Partners has closed Crown Private Equity European Buyout Opportunities, its first FoF dedicated to small and mid-market buyout funds in Europe.

Pfäffikon, Switzerland-based alternative investment manager LGT Capital Partners has announced the final close of Crown Private Equity European Buyout Opportunities on €392 million ($472 million).

The fund of funds attracted investors from the UK, central Europe, the US and Australia, including pension funds, insurance companies and foundations. UK investors included the London Pension Fund Authority and the London Borough of Hillingdon Council.

The fund investment programme will focus on small and mid-market European buyout funds and the allocation will be split 75 percent for primary investments and 25 percent towards purchases of secondary interests, according to LGT Capital partner Tycho Sneyers.

To date, the fund has already committed in excess of €100 million in ten investments – 7 primary and 3 secondaries in Germany, Sweden, the UK, Italy and Eastern Europe.

The fund, which was launched in 2003 and held a first close in June last year, will be listed as a PLC on the Irish stock exchange. According to Sneyers, this vehicle was chosen as: “it provides an institutional, regulated environment that suits our investors”.

Commenting on the fundraising, Sneyers said the firm’s investment track record in the buyout market and diverse mix of nationalities within the pan-European team were both important factors: “To get access to small or mid-market buyout funds in individual countries, you have to have local knowledge. Our European investment team, with 14 nationalities represented, is very well positioned to provide access to the best opportunities in the European private equity fund universe.”

Earlier this year, LGT secured a mandate from The Seventh Swedish National Pension Fund (AP7) to the fund worth around $20 million. At the end of 2003, the firm overall managed around $2.8 billion of capital allocated to private equity and $1.6 billion allocated to hedge funds. The group’s largest client is the royal family of Liechenstein.