The terms of the deal were not disclosed.

LGT Capital Partners, the alternative investment specialist, has agreed to acquire European Capital Fund Management, a London- and Paris-based private debt manager, for an undisclosed sum.

The transaction, which is expected to close in the second quarter  of 2017, is subject to regulatory approval.

LGT says it seeks to strengthen its investment capabilities in private markets and enhance its offering. The deal encompasses all private debt funds managed by European Capital's team of more than 20 specialists. As part of the transaction, LGT will also be a syndicate investor in two private debt funds managed by European Capital. 

LGT says its clients will benefit from access to European private debt solutions.

“We are pleased to attain such an experienced team that has built a strong reputation in this area over many years,” said Roberto Paganoni, chief executive of LGT. “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, he said.