LGT closes fourth Asia fund-of-funds at $1b

Crown Asia Pacific Private Equity IV (CAPE IV) achieved a first close in April last year of $650 million, including a $125 million commitment from Employees Retirement System of Texas, according to AVCJ Research. There are more than 50 LPs in total, including pension funds, insurance companies and university endowments in Europe, the US, Canada, Australia, and the Middle East.

CAPE IV was launched in September 2017 and had made 17 PE fund commitments worth $254 million as of year-end 2018, as well as two co-investments worth a combined $22 million, and two secondary investments worth $24 million in total. The fund is set to invest up to October 2025 with expiry in 2030 and up three one-year extensions.

The bulk of future activity will focus on funds which in turn invest small and mid-market buyouts, growth capital strategies and, on an opportunistic basis, venture capital programs. As of February, CAPE IV's geographic distribution by value of underlying companies or other investments was 67% China, 21% India, 10% Singapore, and 2% US. Sector targeting will be dominated by consumer and IT categories.

"With CAPE IV, we are making investments that are benefiting from the consumption upgrade stories in both China and India, while also offering investors balanced exposure to some of the leading small and mid-market private equity firms across the entire region," Ivan Vercoutere, a managing partner at LGT, said in a statement. "Our longstanding relationships with these managers provide us with the quality and quantity of deal flow required to remain highly selective in our private equity co-investments, as Asia becomes an increasingly attractive and important market for private equity."

Switzerland-headquartered LGT has more than $60 billion in assets under management, about half of which is in PE, and more than 550 institutional clients in 37 countries. Globally, it employs more than 500 professionals for range of investment programs focused on private markets, liquid alternatives, and multi-asset class solutions.

The firm has been active in Asia Pacific since 1998 and maintains offices in Beijing, Hong Kong, Tokyo and Sydney. CAPE III raised $590 million in 2017, while CAPE II raised $418 in 2013, and CAPE I raised $373 million in 2009.

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• Topics
• Fundraising
• LPs
• Fund-of-funds
• Asia
• LGT Capital Partners
• Secondaries
• Co-investment