LGT Capital Partners is set to acquire London and Paris-based private debt manager European Capital Fund Management.
The deal is expected to close in the second quarter of 2017 and is subject to regulatory approval.
The transaction sees the Liechtenstein private bank strengthen its private debt team as well acquire all private debt funds managed by European Capital and a team of over 20 specialists.
The private debt team will continue to be led by the existing four partners at European Capital, including Matthew Gordon Clark, Etienne Haubold, Stephane Legrand and Juan Carlos Morales Cortes.
LGT is acquiring the boutique asset manager from companies controlled by Ares Management.
Commenting on the transaction, Roberto Paganoni CEO at LGT Capital Partners said: ‘We are pleased to attain such an experienced team that has built a strong reputation in this area over many years.
‘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.’
On the deal, partner at European Capital JC Morales Cortes said: ‘After developing the business as a team over the last 11 years, we are very pleased to join LGT Capital Partners.’