LGT Capital Partners

What they fund

• Private Market Opportunities — The firm invests in private market opportunities globally, with a specific expansion into the US market through offices in New York, Raleigh, and San Francisco [4].
• Institutional Client Strategies — LGT CP partners with over 700 institutional clients globally, offering tailored investment solutions based on their specific financial needs and goals [2].
• ESG-Integrated Strategies — The firm funds strategies that integrate ESG criteria, reflecting its commitment to sustainable investing [1].

Credibility: The firm's website, news about its US expansion, and client base details support these funding areas [1][2][4].

Investment thesis

LGT Capital Partners operates as a principal investor, deploying its own capital alongside client funds to ensure strict alignment of interests and shared risk/reward profiles [1]. The firm employs a sustainable investment approach within a multi-alternatives framework, integrating environmental, social, and governance (ESG) criteria into its investment decision-making process [1]. Rather than focusing on a single niche, the firm utilizes a diversified multi-alternatives strategy, leveraging 27 years of investment experience to partner with over 700 institutional clients globally [2]. The firm believes in the opportunities provided by private markets and diversifying strategies, aiming to create value through active management and ESG integration [2].

Credibility: LGT Capital Partners' own website and 'About us' page detail the principal alignment and sustainable multi-alternatives approach [1][2].

Value add

LGT Capital Partners provides active management and ESG integration to create value for its clients [2]. The firm leverages its global reach and local roots to offer direct access to private market opportunities, such as its recent expansion into the US West Coast [4].

Fit verdict: Ideal for institutional investors seeking a principal-aligned, ESG-focused multi-alternatives partner with a global footprint.

Founder diligence script:

• How does LGT CP's principal investment model specifically impact the alignment of interests in a fund-of-funds structure?
• What is the firm's process for integrating ESG criteria into its private market due diligence?
• How does LGT CP's global network facilitate access to top-tier private market managers in emerging markets?

Portfolio focus

• Private Markets Focus — The firm actively invests in private markets, seeking to create value through active management and ESG integration [2].
• Liquid Alternatives — LGT CP manages a wide range of investment programs focusing on liquid alternatives, alongside multi-asset class solutions [3].
• Multi-Asset Class Solutions — The firm provides diversified multi-asset class solutions to its institutional clients [3].

Credibility: The firm's investment expertise and program descriptions on its website and a Novus case study confirm these focus areas [2][3].

Notable investments & exits

• Castle Alternative Invest — The firm launched Castle Alternative Invest, a fund of hedge funds listed on the Zurich Stock Exchange in 1996, which later listed on the London Stock Exchange in 2009 [5].

Credibility: Institutional Investor's article details the history and listing of Castle Alternative Invest [5].

Strategic implications

LGT Capital Partners' principal alignment model is a significant differentiator, ensuring strict alignment with clients and potentially attracting capital from risk-averse institutional investors. The firm's strong focus on ESG integration positions it well in a market increasingly demanding sustainable investment solutions. The expansion into the US market, particularly with a new San Francisco office and a partnership with Invesco, signals a strategic push to capture a larger share of the lucrative North American private market opportunities.

Where they could go further

LGT CP could further leverage its ESG expertise to develop specialized impact investing funds, appealing to a growing segment of ESG-focused institutional investors. The firm could enhance its digital capabilities by expanding on its tech-forward data management initiatives, offering clients more transparent and real-time portfolio insights. LGT CP could explore co-investment opportunities in emerging markets, leveraging its global network to provide clients with access to high-growth private market opportunities outside of traditional hubs.