Finland’s eQ buys TDR II stake from LGT

The asset manager has used an individual mandate to pick up a stake in the UK buyout firm's 2007-vehicle, for which it raised an annex fund last year.

eQ Asset Management, a Finnish fund of funds manager, has acquired a stake in a 2007-vintage TDR Capital fund from LGT Capital Partners on behalf of one of its limited partners, Secondaries Investor has learned.

The firm, which is part of Helsinki-listed eQ Group, picked up the stake in TDR Capital II from LGT’s Crown Global Secondaries Fund II, UK regulatory filings show. The deal closed on 25 January.

A source familiar with the deal told Secondaries Investor it was a standalone transaction, not part of a portfolio deal, and that eQ invested from an individual limited partner mandate. eQ’s individual mandates typically start from €50 million, according to the firm’s website.

Last year TDR raised an €800 million annex fund to enable it to inject follow-on financing in TDR II portfolio companies. It is understood that Landmark Partners committed around half of the €800 million for the vehicle. Aside from its annex fund investment, Landmark has acquired at least four stakes in TDR Capital II in recent years, as Secondaries Investor previously reported.

The same source said the eQ deal was at the upper end of the firm’s capabilities as it tends to focus investment on primary stakes in smaller buyout funds, and that it look at mid-market and large buyout funds for secondaries deals.

TDR is raising its fourth fund which has a €2.9 billion hard-cap. At the end of last year Pennsylvania State Employees Retirement System announced that it had agreed to invest up to €93 million in the fund, according to PEI data.

Crown Global Secondaries II is a $1.2 billion fund that closed in 2010 and is managed by LGT, the investment group owned by the royal family of Liechtenstein.

eQ and TDR decliend to comment. LGT did not return a request for comment.

– Adam Le contributed to this report.