Private Credit Solutions
We search private credit markets globally for corporate borrowers and assets that have the potential to generate reliable and diversified income streams. The capital provided to asset owners and corporate borrowers helps to drive growth, capital formation and innovation across private markets globally. A special focus is placed on investments that drive progress against the 17 UN Sustainable Development Goals (SDGs).
>20-year
track record
>12
credit sub-strategies covered
>1,500
underlying borrowers
What we do
We invest in this asset class first and foremost as a principal investor. Our goal for the LGT Endowment is to build a diversified portfolio across multiple private credit strategies to achieve compelling and resilient risk-adjusted returns with limited volatility, significant downside protection and upside convexity.
We provide differentiated access to the full spectrum of private credit opportunities, from direct investments and secondaries to manager selection and liquid credit. Relevant strategies may include a broad range of corporate and non-corporate strategies, such as direct lending, bank loans, NAV loans, structured credit, subordinated lending, specialty finance and lending against hard assets.
The benefit of a multi-strategy approach is that it allows us to find better risk-adjusted returns in all market environments. Our approach allows for underlying strategies to be added, removed and sized over time by a dedicated portfolio management team. We thus have the flexibility to access additional sources of return, strategies, funds and managers through a robust research process.
Our approach – why partner with us
We favor investments that have proven resilient through multiple credit cycles as well as owners that value long-term relationships and the responsible stewardship of assets. As an active investor in private markets since 1997, we have built long-term relationships with a wide network of managers. Our private markets platform enables us to leverage our insights and expertise to source, analyze and monitor private credit investments across all the regions where we invest.
With a long track record of investing in private credit and a highly experienced team, we are well positioned to deliver customized credit solutions that build on the following strengths:
- Flexible investment strategy – We focus on achieving long-term profitability and returns on invested capital while preserving a high level of flexibility when determining the optimal market environment in which to deploy capital in specific sub-strategies.
- Distinctive access – We have established relationships with best-in-class and specialized managers and we source direct opportunities at favorable terms by leveraging the scale of our private markets platform. Our clients can access our private credit solutions through open-ended or closed-ended structures, depending on their individual needs.
- Global approach – Our Private Credit Solutions team is located in Europe and the US, ensuring investment coverage at both a local and a global level to allow us to adjust exposures based on attractive opportunities and strategies.
Team – experienced private credit specialists
Our Private Credit Solutions team comprises 14 professionals with an average of 12 years of industry experience and an average tenure of 6 years at the firm. The team leverages insights, relationships, market coverage, tools and processes from LGT Capital Partners’ wider private markets platform.
Felix Janssen
Partner
Thomas Kyriakoudis
Partner
Uniquely positioned to capture long-term value
"Over the past decade, I have structured, invested and traded across the full spectrum of structured credit products. As an investor with a long-term horizon, the risk-adjusted returns of the asset class are compelling. I joined LGT Capital Partners in 2022 because I believe the firm’s long-term, generational capital is uniquely positioned to invest across the cycle and capture this long-term value. Structured products offer clients regular income streams that are currently amplified by the prevailing interest rates making it an interesting time to invest in the asset class. These high all-in returns are complemented by the protective mechanisms inherent in the structures and highly diversified portfolios which mitigate the downside."
Adam Reynolds
Associate Director
Invest in the most compelling relative value opportunities
"I have been investing in structured credit for over 10 years and it continues to offer attractive returns for the risk profile. Structured credit offers investors diversification, enhanced yield and the opportunity for tailed risk exposures, which can earn investors a significant complexity premium when combined with the right expertise. The interplay between public and private markets in structured credit increasingly presents exceptional opportunities and will be a significant growth driver over the coming years. LGT Capital Partners is well positioned to navigate this landscape with its long-term capital and synergies across the broader platform and private market insights. I look forward to investing in the most compelling relative value opportunities within the credit landscape over the coming years."
Max Flugel
Associate Director
Exciting time to be in private credit
"I have been a participant and investor in the private credit space for more than 20 years and an Investment Committee member for more than a decade. There has never been a more exciting time to be in private credit. Over the course of my career, the nature and scale of the industry has completely changed. It has evolved from what felt like a cottage industry to what is now probably the leading source of financing for sub-IG companies globally. The increase in base rates has turbo-charged the returns available, and outside the core activity of direct lending, new vectors of growth are rapidly emerging − such as credit secondaries, asset-backed lending, NAV loans, consumer finance and structured credit. I joined the LGT Capital Partners platform in 2021 as I saw that the firm is well positioned to benefit from the increase in the scale, scope and complexity of the private credit market."
Thomas Kyriakoudis
Partner