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LGT raises $123m for real estate FoF

The fund will be focused on small-cap real estate funds raising between $300 million and $600 million.

LGT Capital Partners has closed on $123 million for its Crown Small Cap Real Estate Fund II, according to several Securities and Exchange Commission filings.

The fund of funds vehicle, which focuses on small-cap real estate funds raising between $300 million and $600 million, is targeting $400 million, PERE sister publication Secondaries Investor has reported. Fundraising started last year, with the first sale in June, according to the filings.

LGT’s strategy is to allocate the bulk of the fund, or between 40 and 50 percent, to primary investments. Between 30 and 40 percent will go towards co-investments, while secondaries will represent up to 25 percent of the capital, according to a May document on real estate investing prepared for the City of Jacksonville Police & Fire Pension Fund by Summit Strategies Group.

About 35 to 45 percent of the fund will be invested in Europe, 25 to 35 percent will go toward the US, 15 to 20 percent will go to Asia, while emerging markets could represent as much as 15 percent of the capital.

To read more, visit PERE’s sister publication, Secondaries Investor.