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LCM hits hard cap fundraising for LCM Partners Credit Opportunities III strategy


LCM Partners Paul BurdellLCM Partners is delighted to announce the successful closure of the LCM Partners Credit Opportunities III strategy.

The strategy has exceeded €2 billion in commitments and comprises a mix of managed accounts and a commingled fund. Commitments have been received from a variety of pension funds and foundations spanning the US, Continental Europe and the UK.

“LCM Partners is incredibly proud to include some of the most prestigious institutional investors as clients following the close of the LCM Credit Opportunities III strategy. We are honoured to represent state retirement schemes, public and private sector workers and foundations. We take our responsibility to manage our clients’ assets prudently very seriously and it is this approach that has enabled us to deliver positive annual returns over a seventeen year period at an average IRR of 14.9% (gross, unleveraged).” said Paul Burdell, Chief Executive Officer, LCM Partners.

The LCM Partners Credit Opportunities III strategy uses a single investment platform, which enables all funds within the strategy to invest alongside one and other. The commingled fund comprises a Euro and USD sleeve and closed on 31st October 2016 with €865.5 million in commitments. Four managed accounts will also invest into the underlying investment platform with commitments ranging in size from €100 million to €500 million.

Since the launch of LCM Partners Credit Opportunities III, LCM has invested approximately €1 billion in transactions and has a current pipeline exceeding €1.5 billion of performing, rescheduled, and non-performing loans from a wide range of European countries across consumer and SME debt.

Adrian Cloake, Chief Investment Officer at LCM Partners commented “We are ahead of target for pace of deployment and returns achieved for our cornerstone investors since the launch of LCM Partners Credit Opportunities III. The final close of the strategy at over €2 billion means LCM Partners continues to hold significant firepower in what is shaping up to be the most active market for loan purchases that we have seen in the past 17 years of business.”

Adrian continued “The ongoing implementation of Basel III across Europe means the amount of capital banks must hold will increase again on 1st January 2017. More emphasis on capital leads to more focus on reducing risk weighted assets and the quickest way for banks to achieve this is to
sell transactions to managers such as LCM Partners who are able to buy the portfolios, but more importantly service the underlying customers.”

LCM Partners Contact:
Alison Swonnell, Director of Fund Operations
T: +44 203 457 5058
[email protected]

Notes to Editors:

About LCM Credit Opportunities III strategy

  • LCM Partners Credit Opportunities III strategy launched in June 2014 with a cornerstone investor
  • The commingled fund closed 31st October 2016
  • The strategy has delivered a 11.94% IRR, net of management fees and fund expenses, since launch (as at 30th September 2016)
  • The strategy comprises of six funds: four Euro denominated funds based in Luxembourg and two USD funds based in Cayman
  • Sixteen Limited Partners have committed in excess of €2 billion AUM into the strategy

About LCM Partners

  • LCM Partners is an Alternative asset manager, specialising in credit
  • With a track record investing in loan portfolios since 1999, LCM Partners has delivered low relative volatility through annual vintages across the cycle with an unleveraged gross IRR of 14.9%
  • LCM Partners has bought over 2000 transactions and manages €13.5 billion of loans
  • The Firm is part of the Link Financial Group which has 8 offices in 5 countries across Europe, including the largest loan sale markets of the UK, Italy, Spain, Germany and Ireland
  • LCM Partners has won and been nominated for a number of awards including European Distressed Debt Investor 2015 at the Private Debt Investor awards and recently as European Credit Investment Firm of the year 2016 at ACQ5’s hedge fund awards.