LGT Capital Partners Fund Analysis 2025 | Semi-Liquid Private Equity & Credit Funds Review

LGT Capital Partners isn't exactly a household name in the semi-liquid fund world, but perhaps it should be. While everyone talks about the newer players shaking up private markets access, LGT quietly launched two semi-liquid funds in 2022 that deserve serious attention. There's something compelling about a manager with over USD 100 billion under management—and the backing of Liechtenstein's royal family—deciding to enter this space with both a Private Equity Fund and a Private Credit Fund.

What makes this interesting goes beyond the royal connection or the impressive AUM figures. LGT has been in private markets since 1998—long before semi-liquid became the buzzword it is today. The real question isn't whether they have the credentials (they clearly do), but whether their approach to quarterly-liquid Luxembourg SICAVs actually offers something different in an increasingly crowded field.

Why the Royal Connection Actually Matters

Here's where LGT's story gets genuinely interesting. Starting out in 1998 to manage a royal family's money sounds almost quaint by today's standards, but it created something most asset managers would kill for: true long-term thinking. The Princely Family of Liechtenstein didn't just hand over their assets and walk away—they've co-invested USD 4 billion alongside other investors across LGT's strategies. That's not marketing fluff; that's serious skin in the game.

The numbers are impressive enough—over USD 100 billion in assets, 900+ professionals, 16 offices globally—but what's more telling is how this translates into deal-making power. Take their secondaries business: 450+ transactions means relationships with practically every major GP worth knowing. When you're launching semi-liquid funds that need consistent deal flow, those relationships aren't just nice to have; they're essential.

The Private Equity Fund: Playing to Their Strengths

LGT's Semi-Liquid Private Equity Fund doesn't try to reinvent the wheel—and that might be exactly why it works. With a USD 1 to 1.5 billion yearly target deployment capacity, they're focusing on what they already know: secondaries and co-investments. When you've got relationships with over 800 PE sponsors, why not leverage them? It's a straightforward approach that makes a lot of sense for a semi-liquid structure.

There's actually some smart thinking behind the secondaries focus. Unlike primary PE investing where you're essentially writing a blank check and hoping for the best, secondaries give you visibility into actual portfolio companies and their performance. For investors who want quarterly liquidity options, this translates to more predictable cash flows and less of that painful J-curve that comes with traditional PE funds. It's not revolutionary, but it's practical.

The Private Credit Fund: Already Closed (And What That Tells Us)

LGT's Semi-Liquid Private Credit Fund is taking a "yield plus opportunistic" approach to private credit—which sounds like marketing speak until you realize they're essentially trying to capture the best of both worlds. Think steady income from corporate lending combined with higher-return opportunities in asset-backed credit and special situations. It's ambitious, and apparently popular enough that they've already closed it to new investors.

In private credit, deal sourcing is everything, and LGT's 25+ year track record in alternative lending presumably opens doors that newer managers can't access.

Structural Innovation: The SICAV Advantage

Both funds utilize the Luxembourg SICAV structure, which offers several advantages for semi-liquid private market investing:

1. Regulatory Framework

   Luxembourg's regulatory environment provides investor protections while allowing operational flexibility. The SICAV structure enables efficient portfolio management and risk distribution across multiple share classes.

2. Liquidity Management

   The quarterly redemption windows with capacity limitations (approximately 5% of NAV per quarter) balance investor liquidity needs with the underlying illiquid nature of private market assets. This approach helps prevent forced asset sales during market stress.

3. Scalability

   Unlike closed-end fund structures, the SICAV format allows for ongoing capital raising, enabling LGT to deploy capital more efficiently and maintain optimal portfolio construction over time.

The ESG Integration Factor

LGT's approach to ESG integration predates current market trends, with formal integration beginning in 2003 and dedicated sustainability strategies launching in 2009. For institutional investors with ESG mandates, this track record provides comfort that ESG considerations are embedded in the investment process rather than retrofitted.

This is particularly relevant for the private equity fund, where LGT's influence on portfolio companies can drive meaningful ESG improvements. The firm's long-term orientation, supported by family office capital, aligns well with the patient capital approach required for effective ESG integration.

Target Investor Considerations

These funds appear designed for sophisticated investors seeking:

How LGT Stacks Up Against the Competition

The semi-liquid space is getting crowded fast. You've got FlowStone with their secondaries focus, Ares leveraging their massive platform, and dozens of other managers trying to crack this market. So what makes LGT different? Here's what they're betting on:

• ✓Platform Scale: Over USD 100 billion AUM provides institutional-grade infrastructure
• ✓Principal Alignment: USD 4 billion family and employee co-investment
• ✓Secondaries Expertise: 450+ transactions and established GP relationships
• ✓Global Presence: 16 offices enabling local deal sourcing
• ✓ESG Track Record: Two decades of sustainability integration

Key Questions for Prospective Investors

Given the limited public information available on performance and fees, prospective investors should focus on several critical areas:

1. Fee Structure: What are the total costs, including management fees, performance fees, and underlying fund expenses?
2. Liquidity Experience: How have redemption requests been handled since launch? What happens during market stress?
3. Performance Attribution: How much of returns come from manager selection vs. market beta vs. semi-liquid structure benefits?
4. Capacity Management: At what asset levels might the funds close or see diminished returns?
5. Risk Management: How does LGT manage portfolio liquidity mismatches between daily NAV calculations and underlying illiquid assets?

Investment Implications

LGT's semi-liquid funds represent a mature approach to bridging private and liquid markets, backed by significant institutional capabilities and principal alignment. The firm's track record in secondaries and credit markets provides operational credibility, while the Luxembourg SICAV structure offers regulatory comfort for institutional investors.

However, the 2022 launch date means limited performance data is available, and the undisclosed fee structures make cost-benefit analysis challenging. The closure of the credit fund to new investors suggests either strong demand or capacity constraints—both potentially positive indicators but requiring deeper investigation.

For investors considering these funds, the decision likely comes down to confidence in LGT's platform capabilities versus the availability of performance data from more established semi-liquid competitors. The firm's scale and experience provide comfort, but diligence on actual performance, fees, and liquidity management becomes critical.

The Bottom Line

LGT isn't reinventing semi-liquid investing, but they're bringing something valuable to the table: genuine institutional capabilities backed by real money. The USD 4 billion in co-investment isn't just for show—it demonstrates the kind of alignment most managers only talk about. Sure, the 2022 launch means no long-term track record, but the underlying platform has been around long enough to prove itself.

Who should care? Probably investors who value stability and proven expertise over flashy new approaches. If you want semi-liquid private markets exposure from a manager that's been doing this since before it was trendy, LGT makes sense. Just remember that like all semi-liquid strategies, the real test comes when markets get ugly and everyone wants their money back at once.

Fund Manager Profile

Learn more about LGT Capital Partners' comprehensive approach to private markets, backed by the Princely Family of Liechtenstein and managing over USD 100 billion in assets across global investment strategies.

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Fund Profile

Discover how LGT's Semi-Liquid Private Equity Fund provides investors with access to diversified private equity investments with quarterly redemption opportunities through a Luxembourg SICAV structure.

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Fund Profile

Discover how LGT's Semi-Liquid Private Credit Fund provides investors with access to yield-oriented and opportunistic credit strategies across corporate and asset-backed sectors.

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