LGT collects $6bn across latest secondaries offerings

The fundraising haul includes $1.5bn for a dedicated single and concentrated asset vehicle.

LGT Capital Partners, the 15th biggest secondaries firm according to the SI 30, has collected $6 billion across its two latest vehicles focusing on different secondaries strategies.

The Pfäffikon, Switzerland-headquartered manager collected $4.5 billion for Crown Global Secondaries V and $1.5 billion for Crown Secondaries Special Opportunities II, according to a statement.

Both funds are set to close on 31 May.

“We are pleased to have raised a larger [special opportunities fund] to continue providing innovative liquidity solutions to private equity funds and managers,” said Ivan Vercoutere, LGT managing partner in the statement. “The larger pool of capital and increasing strong dealflow enables us to select from an even broader set of opportunities.”

CSG V, the dedicated secondaries vehicle, hit its hard-cap over a target of $3.8 billion, according to Secondaries Investor data. That fund launched in November 2019 and will continue to address what the firm calls “fund solutions” and portfolios of limited partner interests.

CSSO II, which focuses on single and concentrated asset deals, also hit its hard-cap over a $1 billion target, according to a spokesman for the firm. That fund had been in market since 2018. The inaugural fund in the series closed just under $440 million in 2017.

The dedicated secondaries programme has attracted international attention with LP commitments from the likes of Cathay Life Insurance, which committed $50 million, and China Life Insurance (Taiwan), who committed $30 million, according to Secondaries Investor data.

The dedicated single- and concentrated asset strategy has won commitments from US public pensions including $100 million from Employees Retirement System of Texas and $20 million from City of Springfield Police and Fire Pension Fund, according to Secondaries Investor data.

Whether or not to create a separate vehicle for that exposure is actively being debated across the market. Single-asset secondaries have a different duration profile, longer and more concentrated than other secondaries like LP portfolios and multi-asset continuation vehicles, according to Sunaina Sinha, managing partner and founder of London-based Cebile Capital.

“This is a question I know is live and being debated as we speak,” Sinha told Secondaries Investor. “There are some shops that have said they’re going to raise single asset funds, and I think you’re going to hear about a lot more.”

This story was updated to include the CSSO II target.