LGT Capital closes first impact PE fund at USD550 million after high investor demand

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Global multi-alternatives investment platform LGT Capital Partners has announced the final close of its first dedicated impact-focused private equity fund after drawing heavy oversubscription from a diverse global investor base.

 

The firm’s new Crown Impact vehicle, which is an Article 9 fund under SFDR, closed with final capital commitments of USD550 million – significantly exceeding its initial target size of USD350 million, by almost 60 per cent, as a result of strong investor demand and the rapidly growing opportunity set in the impact investment area.

 

Crown Impact invests in what the firm terms “highly impactful companies” across three core impact themes: climate action, inclusive growth, and healthcare. The fund focuses on co-investments alongside leading conventional and impact managers, complementing the portfolio with impact-focused primary and secondary fund investments.

 

“In addition to rigorous investment due diligence, these opportunities are subject to an in-depth impact assessment, which includes their alignment to the UN Sustainable Development Goals and the underlying targets and indicators,” said LGT Partners in a statement.

 

LGT said the fund’s investor base includes pension funds, insurance companies, endowments and family offices across Europe, Latin America, Asia, and Australia. 

 

Ivan Vercoutère, a managing partner at LGT Capital Partners, commented: “We are pleased to have seen significant interest from investors for our first dedicated impact program. In light of the powerful drivers for sustainability and inclusiveness, we will be able to select highly impactful and attractive investments from a continuously developing set of opportunities.”

 

He added: “The capital raised will support LGT Capital Partners’ continued and growing contributions to solving global challenges through the program’s clear focus on key impact areas while also achieving attractive financial returns.” 

 

Said Tycho Sneyers, also a managing partner at the firm: “With Crown Impact, investors benefit from the capabilities and the global network of our investment platform, backed by over 20 years of private equity investing experience, in combination with long-standing leadership in impact and sustainable investing.”

 

He continued: “Crown Impact will be a well-diversified portfolio across sectors, investment styles and geographies, while applying rigorous impact measurement and management practices, which also include external impact verification and transparent impact reporting.” 

 

Since 2010, LGT Capital Partners has invested over USD1 billion in impact opportunities. “Crown Impact is a continued expansion of this investment strategy, leveraging the investment expertise of over 250 investment professionals across Europe, the United States and Asia, as well as over 600 private equity manager relationships worldwide,” said LGT.

 

Owned for more than 80 years by the Princely House of Liechtenstein, LGT describes itself as the largest private banking and asset management group in the world to be owned by an entrepreneurial family – and one of the few independent financial services providers in private ownership.

 

A leading alternative investment manager, LGT Capital Partners currently manages USD85 billion for clients worldwide – including more than 600 pension funds, insurance companies, sovereign wealth funds, and foundations.

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