LGT Capital Partners, a global alternative investment firm managing over $100 billion, announced on Thursday that it has co-led IDG Capital’s $500-million multi-assets continuation vehicle (CV).
LGT Capital Partners said in a statement that the multi-assets CV comprises a diversified portfolio of 13 assets from onshore and offshore selling vehicles. The identity of the other co-lead investor remains unknown.
The transaction structure, which accommodated “numerous shareholders,” was designed to provide liquidity to selling vehicles under liquidation and support continued value creation across the portfolio, said LGT Capital Partners.
The deal marks another successful collaboration between LGT Capital Partners and IDG Capital, following a series of prior transactions.
This is at least the second time that IDG Capital has partnered with LGT Capital Partners for a CV deal. LGT Capital Partners, alongside Boston-based HarbourVest Partners, jointly led a $600-million, GP-led CV deal in 2020 to transform IDG Capital’s assets from a mature RMB-denominated fund to a US dollar vehicle.
Beijing-based IDG Capital is one of the most seasoned firms specialising in private markets investments in China and globally. It has started dealmaking in China since 1993, with a star-studded portfolio including fast-fashion retailer Shein, food delivery firm Meituan, e-commerce platform Pinduoduo, consumer electronics leader Xiaomi, as well as tech giants like Baidu and Tencent.
Besides its presence in Chinese cities, including Beijing, Hong Kong, Shanghai, Shenzhen, and Guangzhou, IDG Capital also operates from overseas offices like Boston, New York, Singapore, Seoul, Hanoi, and Ho Chi Minh.
“This transaction reflects the increasing sophistication and scale of the secondaries market in APAC,” said Brooke Zhou, a partner at LGT Capital Partners, in the statement. “The complexity of this deal – covering both onshore and offshore structures and a diverse set of assets – demonstrates the capabilities of our global secondaries platform to execute in dynamic markets.”
LGT Capital Partners has completed more than 450 secondaries deals since it started investing in the secondaries market over two decades ago. Its secondaries team has dedicated investment professionals in offices in Pfaeffikon (Zurich area), London, New York, Hong Kong, and San Francisco.
The Pfäffikon, Switzerland-headquartered firm works with over 700 institutional clients in 50 countries, managing a wide range of investment programmes focusing on private markets, multi-alternatives, and diversifying strategies, as well as sustainable and impact strategies.
