Deutsche buys in LGT FoF liquidation

The mature portfolio includes stakes in funds managed with exposure to restaurant chain Pizza Hut and gift and card shop Paperchase.

A vehicle owned by Deutsche Asset Management has picked up a portfolio of tail-end assets from LGT Capital Partners.

According to a source familiar with the matter, Picasso GP Limited bought a portfolio of assets that resulted from the liquidation of LGT’s Crown Private Equity, a 2003-vintage fund of funds.

UK regulatory filings reveal that the portfolio included stakes in Rutland Fund II and Primary Capital III (PC III A), managed by UK buyout firms Rutland Partners and Primary Capital Partners.

Glendower Capital, which spun out of Deutsche Asset Management in July 2017, advises on transactions carried out by Picasso.

According to Crown Private Equity’s last publicly available financial report from June 2016, the fund had committed €374.9 million of its €392.5 million of total subscribed capital, equivalent to 95.5 percent. It committed to 22 primary private equity funds and made eight secondaries transactions, the report noted.

Rutland Fund II is a 2007-vintage, £322 million ($444 million; €362 million) buyout fund focused on Western Europe. Other investors include Greater Manchester Pension Fund, Capital Dynamics and Access Capital Partners, according to PEI data.

Remaining assets in the fund are restaurant chain Pizza Hut and building equipment provider AFI-Uplift, according to Rutland’s website.

Primary Capital III is a 2006-vintage, £200 million buyout fund. Investors include West Midlands Pension Fund, Invesco Private Capital and Princeton University Investment Company, according to PEI data.

Remaining assets include gift and card shop Paperchase, for which PCP backed a management buyout in 2010.

Rutland and Deutsche Bank declined to comment. LGT did not return a request for comment.