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Investment

LGT Capital Partners brings $1.6bn PE strategy to Australia

LGT Capital Partners is providing wholesale investors in Australia and New Zealand access to a fully funded private equity portfolio.

The LGT Global Private Equity Australia fund is an Australian-domiciled high-conviction fund that invests into a globally diversified portfolio of secondaries and co-investments focused on buyout opportunities, LGT Capital Partners said.

The fund will work alongside LGT Endowment - the firm's evergreen portfolio - to create "strong alignment of interests."

The open-end structured strategy invests in over 850 underlying portfolio companies and benefits from over 800 private equity sponsors around the world to access "strong deal flow".

Of the $1.6 billion raised across the world, LGT Capital Partners said an Australia institutional investor has contributed $150 million in the seeding round of the fund.

LGT Capital Partners partner Pauline Wetter said the new strategy will contribute to the surging opportunities to invest in private equity.

"Our new semi-liquid strategy provides access to a global set of high-quality opportunities in secondaries and co-investments," Wetter said.

"These are sourced from our extensive network of managers that we have built over more than 25 years and are carefully selected by our strong team to create a broadly diversified, global portfolio."

Meanwhile, principal Nathan Pensabene said the launch aims to replicate the success of a previously-launched strategy.

"We see growing demand for more flexible private equity investment solutions and have launched the new fund to improve the accessibility of the asset class to potential investors," Pensabene said.

"After the launch of our semi-liquid multi-alternatives fund for Australian and New Zealand investors in 2021, we are pleased to be able to offer our private equity platform to a wider range of clients through a semi-liquid fund structure."

The strategy incurs a management fee of 1.65% p.a., as well as a performance fee of 12.5% after a hurdle rate of 8% per annum. Investors can liquidate quarterly, limited to 5% of the fund's net asset value.

Read more: LGT Capital PartnersLGT Global Private Equity Australia FundNathan PensabenePauline WetterLGT Endowment