Martin Randall
LGT Crestone is introducing a tailored investment solution exclusively for its clients, providing access to a select group of idiosyncratic and traditionally hard-to-reach asset classes with low correlation to both traditional and private market investments.
The PG3 Longreach Alternative Strategies Fund (The Fund), is a custom-designed investment vehicle developed in partnership with PG3 AG, the family office of the three co-founders of Partners Group AG, and local alternatives specialist Longreach Alternatives Ltd, enabling investors to co-invest directly alongside the founders.
The Fund offers highly diversified multi-strategy and multi-manager exposure aligned to all three of PG3’s key investment areas: Insurance Finance, Royalty Finance, and Litigation Finance.
The Fund is designed to leverage the three principal strategies as unique risk and return drivers, serving as effective portfolio diversifiers with low correlation to existing traditional and alternative asset classes.
Martin Randall, Head of Private Markets, LGT Crestone, said: “We are delighted to offer our clients a very distinctive investment opportunity that strongly aligns to our commitment to pioneering institutional-calibre solutions for high-net-worth individuals and families.
“Diversification is fundamental to our investment philosophy. Alternative investments like private markets and unlisted real assets have certainly helped diversify portfolios in recent years, however, they often share similar market-related and/or economic sensitivities with traditional assets. Private equity is still equity after all, so when you strip out differences in valuation approaches, the underlying risk factors are the same and should be considered as such when building well diversified portfolios.
“What sets this opportunity apart is its ability to genuinely diversify portfolios through numerous idiosyncratic return streams that have been shown to be uncorrelated to both traditional and alternative assets. In this sense, it represents an ‘alternative’ to traditional alternatives,” said Randall.
Urs Wietlisbach, co-founder of Partners Group, also commented: “Partners Group has had a long-standing relationship with LGT Crestone, however this custom-built solution is the first time we have made these three combined strategies from our own family office, PG3, available in way that is a true reflection of the founders’ portfolio, taking the same unconstrained relative value approach across the three strategies. These three strategies have provided a consistent source of returns to our family office during significant market downturns, such as throughout COVID. Our approach ensures flexibility to effectively navigate evolving market conditions.”
Sam Edwards, Managing Director, Longreach Alternatives, reflected on the Fund’s natural alignment to LGT Crestone’s offerings: “Longreach’s longstanding relationship with LGT Crestone speaks to their position as a leader in private markets, making them an ideal partner for delivering such an innovative alternative investment solution. We’re confident that this collaboration will empower high-net-wealth investors with access to a truly unique investment opportunity.”
With nearly 20% of its $30 billion in assets allocated to alternatives, LGT Crestone has pioneered access to these types of investments in the Australian high-net-wealth space.