LGT Capital Partners closes fifth Asia fund-of-funds at $1.65b hard cap

Swiss alternative investment specialist LGT Capital Partners has held the final close of its fifth Asia Pacific fund-of-funds at a hard cap of $1.65 billion, which exceeded the $1 billion target.

The fund, Crown Asia-Pacific Private Equity V (CAPE V), attracted commitments from more than 50 institutions, including pension funds, insurance companies, university endowments and foundations in Europe, the US, Canada, Australia and the Middle East, per the asset manager’s statement.

“We have seen strong growth in the private equity asset class in the Asia-Pacific region over the past decade, and institutional investors remain focused on building their exposure to the region across vintage years,” said Doug Coulter, a Hong Kong-based partner at LGT Capital Partners.

Ivan Vercoutère, the firm’s managing partner, added: “With CAPE V, we are making investments that are benefiting from the continued improvement in household incomes across emerging Asia while also offering investors balanced exposure to the more mature private equity markets in the region.”

The latest close comes more than two years after LGT raised $1 billion for the predecessor vehicle, CAPE IV, which focused on consumption upgrade stories in China and India.

Earlier this month, LGT Capital Partners also closed its first impact-focused private equity investment fund, at $550 million.

Last year, the firm closed its Crown Secondaries Special Opportunities II at $1.57 billion, and raised $4.5 billion for Crown Global Secondaries V.

Having started its operation in the Asia-Pacific region since 1998, LGT Capital Partners makes primary and secondary investments as well as co-investments.

In the APAC region, the firm has offices in Dubai, Beijing, Hong Kong, Tokyo and Sydney. It has over $85 billion in assets under management, with more than 600 institutional clients in 42 countries.

In 2021, financial group LGT was split into three separate firms, which include LGT Private Banking and Lightstone, in addition to LGT Capital Partners.

The asset manager joins a spate of other investors who have a dedicated mandate for the APAC market, such as HarbourVest Partners, which recently secured more than $870 million for its latest Asia-focused fund of funds, and in March closed the over $1.6 billion HIPEP IX, another fund of funds that invests in Europe and APAC.

In January, Asia Alternatives Management raised $2 billion in new commitments across Asia Alternatives Capital Partners VI and several fund vehicles.

Two years ago, Singapore-based Axiom Asia Private Capital closed its sixth fund of funds at its $1.8 billion hard cap, while Adams Street Partners was reported to seek up to $350 million for its Asia fund-of-funds.

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