LGT Capital hits final close of third co-investment fund at $2b

Swiss alternative investment firm LGT Capital Partners has announced that it has raised $2 billion for its third co-investment fund that will opportunistically invest in the Asia Pacific region.

The fund, Crown Co-investment Opportunities III (CCO III), exceeded a $1.5 billion target and attracted more than 60 institutional investors, including pension funds, insurance firms, endowments, and family offices in Europe, the Americas, Asia, Australia, and the Middle East.

LGT said the fund continues the investment strategy of its predecessor funds and seeks to build a diversified portfolio of co-investments alongside the firm’s network. CCO II had closed at $1.3 billion in 2019.

Aside from opportunistically investing in the Asia Pacific, the fund will also focus on buyouts in North America and Europe.

“With CCO III, we will continue to work closely with our private equity partners and focus on opportunities with clear visibility on multiple sources of value creation, while ensuring strong downside protection,” said Ivan Vercoutère, managing partner at LGT Capital Partners.

The final close of CCO III comes a month after LGT Capital Partners held the final close of its fifth Asia Pacific fund-of-funds at a hard cap of $1.65 billion, exceeding a $1-billion target.

The fund, Crown Asia-Pacific Private Equity V (CAPE V), attracted commitments from more than 50 institutions. In 2020, LGT raised $1 billion for the predecessor vehicle, CAPE IV, which focused on consumption upgrade stories in China and India.

Having started its operation in the Asia-Pacific region in 1998, LGT Capital Partners makes primary and secondary investments as well as co-investments.

Headquartered in Pfaeffikon, Switzerland, LGT Capital Partners has been present in the Asia-Pacific region since 1998. It focuses on private markets, liquid alternatives, and multi-asset class solutions.

In the APAC region, the firm has offices in Beijing, Hong Kong, Tokyo, and Sydney. It has over $85 billion in assets under management, with more than 600 institutional clients in 42 countries.

The asset manager joins a spate of other investors who have a dedicated mandate for the APAC market, such as HarbourVest Partners, which recently secured more than $870 million for its latest Asia-focused fund of funds, and in March closed the over $1.6 billion HIPEP IX, another fund of funds that invests in Europe and APAC.

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