LGT launches multi-alternatives fund with ILS component in Australia

LGT Capital Partners (LGT CP), the global alternative investments specialist, is bringing a new multi-strategy alternatives investment fund offering to Australia, with insurance-linked securities (ILS) part of its portfolio.

LGT Capital Partners is part of the broader LGT Group that is owned by the Princely House of Liechtenstein and of course has a dedicated ILS specialist investment team in its LGT ILS Partners Ltd. unit.

LGT ILS Partners offers a range of dedicated insurance and reinsurance-linked securities (ILS) fund offerings, including strategies focused on private ILS or collateralised reinsurance and catastrophe bonds.

But, as an asset manager, LGT Capital Partners also incorporates insurance-linked securities (ILS), particularly the more liquid variety such as catastrophe bonds, within a range of multi-strategy alternatives funds, of which this is a first to be directly marketed into Australia.

LGT Capital Partners manages over US $75 billion of assets, but this new launch is its first fund in the Australian market, the LGT Multi-Alternatives Australia Fund.

LGT Capital Partners has teamed up with local Australian firm Equity Trustees as the responsible entity for the new fund and to assist in its distribution.

Wholesale and institutional investors in Australia and New Zealand are increasingly including alternatives as part of their portfolios, Equity Trustees explained, making this an opportune time to launch a new alternatives strategy.

The LGT Multi-Alternatives Australia Fund is focused on private market investments, with core holdings in private equity, real estatee, infrastructure and private debt, as well as liquid alternatives including insurance-linked strategies (ILS), hedge funds and alternative risk premia.

Russell Beasley, Executive General Manager, Corporate Trustee Services, Equity Trustees said Equity Trustees commented on adding LGT Capital Partners to its list of global clients.

“We are delighted to be supporting a global asset manager of such scale with the launch of their first fund in the Australian market,” he explained.

“We have grown to become the market leading responsible entity provider in Australia, offering the right support, expertise and capability for new entrants like LGT CP.”

Nathan Pensabene, Principal and Head of LGT CP’s Australian subsidiary added, “We have been very pleased with the interest regarding the launch of our first dedicated fund for Australian and New Zealand investors. Throughout both the due diligence and on-boarding processes we were impressed with the experience and local market knowledge offered by the team at Equity Trustees.

“We are looking forward to working with Equity Trustees to make this innovative fund available to institutional and wholesale investors in the Australian market. The fund will invest alongside our founders, employees and other investors, building on our more than twenty years of investment experience in alternative strategies.”