LGT Capital Partners has held a first close its Crown Global Secondaries II plc (CGS II) at $268 million. The secondaries private equity market provides liquidity to private equity investors, allowing them to sell positions in private equity funds and liquidate equity stakes in private companies.
Tycho Sneyers, Partner at LGT Capital Partners, comments: “With a target of $750 million, we are raising a mid-sized secondary fund which allows us to be very selective and focus on those transactions where we have proprietary insights. We believe our disciplined approach of acquiring high quality assets through smaller, less intermediated transactions will achieve attractive returns while taking limited risks.”
Ivan Vercoutere, Partner at LGT Capital Partners, adds: "We have already completed five attractive transactions for CGS II, where we have acquired a total of 13 underlying funds with portfolio investments in the US, Europe and China. These transactions have performed very well as we have been able to acquire high quality and well performing assets at very attractive prices. The current environment plays to our strength of targeting less competitive mid-market transactions.”
LGT Capital Partners has been investing in secondaries for over 10 years, and over that period the firm claims to have achieved a 25% IRR (without the use of leverage in completing transactions) on $1.3 billion of secondary investments.