Swiss-based LGT Capital Partners has received a £100 million (€117 million, $157 million) mandate from Kingfisher, a UK-based pension scheme.
The separate account is to focus on a wide range of alternative classes, including hedge funds, commodities, insurance-linked securities, real estate and private equity. “[Kingfisher Pension Scheme] will benefit from a portfolio of nine alternative asset classes and the convenience of a single reporting solution for their alternative investments,” Tycho Sneyers, managing partner at LGT, told Private Equity International.
He believes this multi-asset mandate will solve some of the problems faced by a number of pensions, which are eager to gain exposure to higher-yielding assets but lack sufficient manpower to manage them.
“In 2011 we recognised the difficulties some pension funds face in accessing alternative investments, because effectively managing a diversified portfolio of such investments requires significant team resources and expertise. In response, we developed our multi-alternative offering, which provides them with exposure to a broad range of risk/return drivers and access to best-in-class managers.”
It is the second account of this type created by LGT since the beginning of the year. In January, the firm received a £280 million mandate for its multi-alternative offering from the British Hertfordshire County Council, in a move that also represented one of the largest commitments exclusively focused on alternatives ever made by a UK local pension.
LGT Capital Partners, which manages around £4.7 billion in segregated mandates, intends to expand its separate account offering in the coming years. “We anticipate that more clients will see the benefits of this solution in the months ahead and will want to invest either through a separate account or our Crown Multi-Alternatives fund,” Sneyers said.
The firm’s latest mandate comes just a few months after it closed Crown Global Secondaries III, its latest secondaries fund. The vehicles reached its hard-cap at $2 billion in February 2013.
Its previous secondaries fund, a 2010 vintage, held its final close on $1.2 billion.