Guggenheim Investments has closed a $250m private debt fund, with LGT Capital Partners leading commitments, as institutional investors continue to allocate capital to private credit strategies.

The fund will be managed by Guggenheim Corporate Funding, Guggenheim’s private debt investment platform. LGT Capital Partners led the fundraising, alongside commitments from other limited partners, according to Guggenheim.

Joe McCurdy, head of origination at Guggenheim Corporate Funding, said: “We see the continued expansion of our LP relationships as a testament to the strength and differentiation of our platform and underwriting strategy.”

Guggenheim Investments manages about $357bn across fixed income, equity, and alternative strategies. The private debt vehicle adds to its growing focus on alternative credit at a time when banks have retreated from certain forms of corporate lending.

Felix Janssen, partner and co-head of private credit solutions at LGT Capital Partners, said the investment “underscores our capabilities in acquiring portfolios of private credit loans and our commitment to providing primary fund capital to credit managers with a proven track record in private credit”.

LGT Capital Partners, which manages around $120bn, has been expanding its exposure to private credit as investors seek yield and diversification amid volatile public markets.

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