LGT Capital Partners Closes Multi-Billion Secondaries Fund – February 2013

by Patrick Adefuye

  • 28 Feb 2013
  • PE

LGT Capital Partners has held a final close for its latest dedicated secondaries vehicle - Crown Global Secondaries III - raising a total of $2bn, above the original target of $1.5bn in what is the first close for a secondaries vehicle in 2013. The vehicle received commitments from over 80 institutional investors, including sovereign wealth funds, pension funds, endowments and foundations. The majority of the investors (50%) are from continental Europe, with 12% from the UK, 14% from North America, 19% from Asia-Pacific and 4% from the Middle East. Crown Global Secondaries III like its predecessors will look to purchase secondary interests in funds on a global scale.

The year 2012 saw a total of 15 secondaries funds raise aggregate capital of $20.3bn, representing more than twice the capital raised for such vehicles in 2011. The majority of capital committed by investors to secondaries funds that closed in 2012 is concentrated in just four vehicles - AXA Secondary Fund V, Coller International Partners VI, CS Strategic Partners V and Partners Group Secondary 2011 – which together collected $18.1bn, 89% of the total capital raised. In total there are 29 secondaries vehicles in the market currently seeking an aggregate of $22.3bn. The largest two secondaries vehicles in market are Dover Street VIII and Vintage Fund VI, respectively managed by HarbourVest Partners and Goldman Sachs Private Equity Group. Both vehicles are seeking $3bn.

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