LGT European Capital raises $726m for latest debt fund

The firm is raising its first vehicle since it was acquired by Swiss asset manager LGT.

LGT European Capital has raised almost $726 million for its second private debt fund, according to filings with US regulators.

The fund, Crown European Private Debt II, is registered in Luxembourg and began fundraising in December 2017, according to a Securities and Exchange Commission (SEC) filing.

LGT European Capital was created in June last year when Switzerland-based asset manager LGT Capital Partners acquired debt specialist European Capital.

The target for the fund is unknown, but it is already larger than the $575 million (€500 million) sought for its previous vehicle, European Capital Private Debt Fund. According to the SEC filing, the fund currently has 37 investors.

The firm’s predecessor fund raised a total of €474.5 million by the time of its final close in April 2016. It provides mezzanine and senior loans to sponsor-led buyouts of companies in the European mid-market. It attracted commitments from 17 institutional investors including insurance companies, pension funds and family offices.

LGT European Capital is managed by a team of four partners led by Matthew Gordon Clark.