– LGT Capital Partners successfully priced Legato Euro CLO IV DAC (Legato IV), the fourth transaction on its dedicated CLO platform.
– The transaction closed at €405 million, increasing total assets under management on the Legato platform to €1.8 billion.
– Legato IV attracted commitments from more than 20 existing and new investors across the capital structure.
– The transaction includes a 1.5-year non-call period and a 4.5-year reinvestment period.
– Thomas Kyriakoudis, Partner and Co-Head of Private Credit Solutions, highlighted the resilience of European CLOs despite challenging credit markets in the first half of 2026, noting that strong investor demand reflects confidence in the platform and growing appetite for CLO investments.
– Ilina Ying Chen, Portfolio Manager, emphasized that record European CLO issuance makes disciplined portfolio construction and selectivity increasingly important, with Legato IV demonstrating the firm’s ability to maintain high credit standards throughout market cycles.
– The Legato platform builds on more than a decade of LGT Capital Partners’ experience investing in CLOs as both a limited partner and direct investor.
Launched in May 2025, the Legato platform manages European CLO portfolios using both internal capital allocations and institutional third-party investments.
