LGT Capital Partners Launches European CLO Platform ‘Legato’
23 MAY, 2025
By Jose Luis Palmer from RankiaPro Europe
LGT Capital Partners has unveiled Legato, a new platform dedicated to managing European collateralized loan obligations (CLOs), marking a strategic expansion into structured credit. The platform aims to capitalise on the firm’s longstanding expertise in private markets and its decade-long track record as a CLO investor.
A Strategic Step into Active CLO Management
With over ten years of experience investing in CLOs as both a limited partner and direct investor, LGT Capital Partners is now transitioning to active management with its own portfolios under the newly launched Legato platform. Based in Pfaeffikon and London, Legato is designed to offer access to the resilience and attractive risk-return characteristics of the CLO asset class, especially amid varying economic cycles.
The platform will utilise existing internal capital allocations and also welcome institutional third-party investors, providing them with a new avenue into structured credit. This move underscores the firm's ambition to establish a long-term foothold in the sector, supported by its more than 25 years of experience in private markets and a strong capital base.
Experienced Leadership and ESG Integration
Thomas Kyriakoudis, Partner and Co-Head of Private Credit Solutions at LGT Capital Partners, will co-manage Legato alongside Ilina Chen, who has been appointed Portfolio Manager. The team will be bolstered by a growing group of analysts to enhance research and due diligence efforts. The firm has also engaged Deutsche Bank to lead the placement of the platform’s first CLO transaction, Legato 1.
Legato aims to deliver enhanced risk-adjusted returns by leveraging LGT’s global relationships and insights from its private equity network, providing a more granular understanding of CLO collateral pools. In line with the firm’s broader investment philosophy, ESG principles will be embedded throughout the investment process.
We are pleased to introduce Legato as an integral part of our credit investment offering. We believe that by leveraging our in-depth credit analysis, along with the resources and CLO relationships that we have developed over more than a decade, Legato is well positioned to deliver value to our clients, particularly in today’s evolving market environment.
Thomas Kyriakoudis, Partner, Co-Head of Credit Solutions at LGT Capital Partners
