LCM nearing €4bn target for credit opportunities strategy

The fund manager has gathered pledges of €3.4bn and is hoping to reach a final close on at least €4bn by the end of June.

Fund manager LCM Partners has €3.4 billion for its LCM Credit Opportunities 4 strategy from investors which have either made commitments or are soon to finalise them.

The London-based firm is hoping to reach or exceed its target of €4 billion for the strategy with the final close for the commingled fund being held at the end of April 2021. The fundraising process is expected to be concluded in June following the launch of additional separately managed accounts.

Interest from existing limited partners has been strong with more than €2 billion of commitments coming from clients that invested in the previous strategy, LCM Credit Opportunities 3. We understand eight new LPs have been added to the roster.

Adding new investors in this environment is arguably the biggest challenge GPs face, given the backdrop of the global pandemic, which has been buffeting the fundraising market since around March. During that period, all due diligence conducted on LCM was done remotely.

According to a source, existing LPs – including one that has been an LCM investor for 16 years – have helped by providing potential new LPs with references. The fund has also been underwritten by six different consultants conducting investment and operational due diligence.

LCM invests in performing and non-performing consumer and SME debt and has delivered a 13.9 percent return on an unlevered basis over the last 21 years. The firm, founded in 1999, has 12 offices in eight countries.