About LGT Capital Partners

• Founded: 1999

• Headquarters: Pfäffikon, Switzerland

• AUM: approximately $90bn (as of 2024)

• Strategy: Private markets investment platform spanning private equity, private debt, real assets, and multi-asset solutions

• Track record: Over two decades deploying across primary funds, secondaries, and co-investments; manages capital for the Princely House of Liechtenstein and institutional investors globally

• Leadership: Managing Partners include Philipp Roth (CEO) and various sector heads across asset classes

LGT Capital Partners has launched a credit secondaries strategy, its first dedicated vehicle for acquiring credit fund stakes in the secondary market. The fund will pursue LP-led transactions, GP-led restructurings, and opportunistic situations, with a focus on senior lending positions. The move extends LGT's existing secondaries platform—previously concentrated in private equity—into credit at a time when secondary volume in private debt is accelerating.

The senior lending emphasis positions LGT at the less levered, more liquid end of the credit secondaries spectrum, a deliberate choice as LP-led credit deals have picked up. Large institutional sellers are increasingly looking to rebalance overweight private debt allocations accumulated during the 2020–2022 vintage years, when committed capital to credit funds surged. LGT's entry follows similar credit secondaries launches by HarbourVest and Lexington Partners over the past 18 months, both of which raised dedicated pools north of $2bn. The question is whether LGT can differentiate on sourcing—its captive LP network and Liechtenstein family office roots theoretically offer deal flow not widely shopped, but that advantage narrows as more platforms build credit secondaries capabilities.

Deployment pace will be the tell. Credit secondaries have shorter duration than PE secondaries, meaning LGT will need to sustain deal flow to avoid cash drag. If the fund skews heavily toward senior positions in performing portfolios, pricing will be tighter and return dispersion lower than in distressed or mezzanine-focused strategies. That's a safer bet in a maturity wall environment, but it also means LGT is competing on relationship and speed rather than complexity arbitrage—a different game than its PE secondaries playbook.

Source: Private Debt Investor