Alternative investment specialist LGT Capital Partners is to acquire European Capital Fund Management, a London- and Paris-based private debt manager, from companies controlled by Ares Management.
Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2017. The purchase price has not been disclosed.
In partnering up with European Capital, LGT Capital Partners will strengthen its investment competency in private markets. The transaction encompasses all private debt funds managed by European Capital and a team of more than 20 specialists.
“We are pleased to attain such an experienced team that has built a strong reputation in this area over many years. With its dedicated focus on small and mid-market direct lending, and its diligent investment approach, we see a very good fit with our investment philosophy. The private debt team will continue to be led by the existing four partners, Matthew Gordon Clark, Etienne Haubold, Stephane Legrand and Juan Carlos Morales Cortes,” says Roberto Paganoni, CEO of LGT Capital Partners.
“After developing the business as a team over the last 11 years, we are very pleased to join LGT Capital Partners. We are convinced that LGT Capital Partners’ reputable, international platform will enable us to jointly accelerate the growth of the private debt business,” says JC Morales Cortes, partner of European Capital.
As part of the transaction, LGT Capital Partners will also be a syndicate investor in two private debt funds managed by European Capital.
Berkshire Capital acted as financial adviser for LGT Capital Partners and Credit Suisse acted as financial adviser for Ares Management.
