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LGT bullish on secondaries prospects

The Swiss fund of funds manager has raised $1.2bn for its latest secondaries fund.

Switzerland-headquartered fund of funds manager LGT Capital Partners has rounded up $1.2 billion in commitments for its latest secondaries fund, Crown Global Secondaries II.

Following a first close in August 2009, the firm upped its original target of $750 million to $1.2 billion, the firm said in a statement Thursday morning. “Even with the increased target size, the fund ended up significantly oversubscribed,” said Tycho Sneyers, a partner at LGT.

The fund has already completed 20 transactions, acquiring 50 underlying fund interests with investments across North America, Europe and Asia.

Ivan Vercoutere, also a partner at LGT, said the transactions to date had all performed “very well” and was confident the firm’s focus on mid-sized transactions would “continue to achieve attractive returns”.

LGT did not disclose the identities of its limited partners, which include pension funds, insurance companies, endowments and foundations from around the world. Among these is the Asset Super, an Australian superannuation fund with more than $1.4 billion under management.

The niche area of secondaries – in which funds are raised to acquire exiting fund interests and portfolios of direct interests from other LPs – enjoyed a fundraising boom during 2009. It was the only area of private equity fundraising that saw commitments rise year-on-year, with a record high of $22.3 billion committed to the strategy, up 201 percent on 2008, according to data from placement agent and adviser Probitas Partners.