LGT picks up European Capital in private debt play

LGT Capital Partners has enhanced its private debt capabilities by acquiring the London- and Paris-based firm, along with two private debt funds.

LGT Capital Partners has announced the acquisition of European Capital Fund Management. European Capital manages two debt funds, which LGT will become a syndicated investor in as a result of the transaction.

The deal is expected to be completed in Q2 2017. Terms of the deal could not be determined immediately. 

European Capital manages two private debt funds. The firm announced it had completed a final close on its European Capital Private Debt Fund in April 2016. The fund raised €473.5 million. 

European Capital also has a £100 million fund focusing on UK-based SMEs. The European Capital UK SME Debt Fund received a £50 million investment from the British Business Bank in September 2014. 

The firm is owned by American Capital, which was acquired by Ares Capital in May last year. That deal was reportedly worth $3.4 billion (€3.2 billion, £2.7 billion). 

Swiss-based LGT has approximately $55 billion (€52 billion, £45 billion) in assets under management. The firm largely focuses on private markets, liquid alternatives and multi-asset products. 

The acquired firm manages approximately €700 million. In addition to the two debt funds, the firm also has a private equity offering. 

Spokespeople from European Capital, LGT and Ares did not respond to calls seeking further comment by time of publication.