LGT to launch third secondaries fund

The Swiss firm is poised to bring a third secondaries fund to market after closing its predecessor, Crown Global Secondaries III, on $1.2bn last year.

LGT Capital Partners, the fund of funds arm of the Liechtenstein ruling family's financial services business LGT Group, will launch a third secondaries vehicle before the end of the year, a source close to the firm told Private Equity International.

Crown Global Secondaries III will be of similar size and focus as its predecessor, Crown Global Secondaries II, which closed on $1.2 billion for mid-sized transactions last year, the source said. The second fund is fully invested.

LGT has been bullish on secondaries over the past two years, having increased the target of its previous secondaries fund from $750 million to $1.2 billion. Since launching the second fund in 2009, the firm acquired 50 underlying fund interests across North America, Europe and Asia before holding a final close in June, 2010.

Crown Global Secondaries II has performed well to date, generating a multiple of around 1.5x and a “very high IRR”, the source said.

LGT enjoyed a banner year for fundraising in 2010, raising three vehicles totaling $4.1 billion in commitments. In addition to its secondaries fund, the firm also closed a €429 million mid-market fund of funds and a €562 million global fund of funds.

The firm manages over $21 billion in private equity and hedge fund assets.

Graham Winfrey contributed to this report.