Fortis bank, which has diversified private equity investing interests, has recently awarded an as yet unspecified fund-of-funds management contract to LGT Capital Partners. LGT Capital Partners has euro2.9 billion of alternative assets under management as well as managing the Swiss-listed vehicles Castle Private Equity and Castle Alternative Invest.
Tycho Sneyers at LGT is convinced the firm has sufficient expertise to successfully manage a portfolio of private equity funds for Fortis and is confident that LGT’s track record is among the best in the private equity fund-of-funds industry, investing both its own and client’s money.
The Fortis fund will have a primary fund component, as well as a focus on the secondary market. This is another reason Fortis was attracted to LGT says Sneyers. “We are a dedicated secondaries player and have a good track record in the sector.” He cites Castle Private Equity’s and Coller Capital’s $265 million acquisition of the private equity portfolio of US-based Shell Pension Trust as an example.
This is the first mandate for Fortis, and will be invested mainly in US buyout funds. Brigitte Boone, CEO Global Private Equity at Fortis Bank, said: “LGT Capital Partners demonstrated its capabilities to act as a highly professional adviser and partner for the establishment of a fund-of-funds portfolio which compliments and diversifies Fortis Bank’s existing private equity asset distribution.”
Fortis is also aiming to expand its captive private equity fund management business, currently operating out of Belgium and does most of its investment in companies located in that country. New teams will be set up in the Netherlands and France also. The amount of funds to be managed by these separate teams is unspecified.