LGT European Capital announces the final close of Crown European Private Debt II S.C.Sp. (CEPD II), with total subscriptions of EUR 1.35 billion (original target of EUR 800 million). The program’s investor base consists of more than 60 institutions, including pension funds, insurance companies, endowments and family offices in Europe, North America, the Middle East and Asia. Furthermore, LGT European Capital will operate under the name of LGT Private Debt as of 1 July 2019.
The program, launched in late 2017, finances unitranche as well as subordinated debt transactions across Europe and targets investments in the range from EUR 15 million to EUR 150 million.
Stephane Legrand, Partner at LGT Private Debt, Paris, comments: “In making debt investments for our clients, we focus on opportunities with a strong credit profile and clear visibility on multiple sources of value creation, while ensuring strong downside protection. Our large network of established relationships with sponsors (private equity investors) as well as intermediaries provides us with the quality and quantity of deal flow required to remain highly selective in investing.”
Juan Carlos Morales Cortes, Partner at LGT Private Debt, London, adds: “Institutional investors have shown an increasing interest in private debt investing over the last few years, especially in senior-secured, first-lien ranking unitranche. Thus, CEPD II has been supported by a combination of new and existing investors, who got access to a well-diversified pan-European portfolio in the attractive lower-mid market.”
The strong interest from investors in CEPD II shows that the onboarding of the experienced team of LGT European Capital two years ago has been well received by clients. As of July 1, 2019, we are now rebranding the team to LGT Private Debt. The London based entity LGT European Capital Ltd will going forward operate under LGT Private Debt (UK) Ltd, the Paris based entity will be renamed to LGT Private Debt (France) S.A.S. The distribution of the funds will remain embedded in LGT Capital Partners overall distribution efforts.
