LGV’s principal source of funding its deals since the early 1990s has been through fixed life limited partnerships. Since 1994, investors have committed in excess of £1.6bn to LGV’s annual partnerships, around half of which came from external investors, such as pension funds and insurance companies, both UK and overseas.
While LGV aims to attract LPs for the long term, the typical investment period and target three to four year holding periods which are characteristic of its funds offer LPs a faster return of capital as well as allowing for the flexibility to commit different amounts to each fund.
LGV's most recent fund, the LGV 5 Fund Limited Partnership, had aggregate commitments of £200m. 16 of the 20 investors in LGV 5 are UK based (representing 80% by value) with the remainder being two North American investors (16% by value) and two European investors, 17 are pension funds or other investment companies (representing 91% by value) and 3 are banks (9% by value).
