Guggenheim and LGT Partner on $250M Vehicle in Strategic Debt Play

NEW YORK, NY – January 08, 2026 – Guggenheim Investments has secured a significant $250 million capital injection for its private debt strategy, closing a new vehicle led by the prominent global alternative investor, LGT Capital Partners. The deal, which also includes other limited partners, is a powerful vote of confidence in Guggenheim's established platform and a telling indicator of the sustained institutional appetite for private credit.

The new vehicle will not only fuel the continued growth of Guggenheim's origination platform but will also manage an existing portfolio of loans. This dual purpose points to a sophisticated transaction designed to provide both fresh capital for new investments and strategic validation of the firm's current assets.

"We are honored by the continued trust that top-tier global investors place in our private debt capabilities,” said Dina DiLorenzo, President of Guggenheim Investments, in a statement. “We believe this partnership with LGT Capital Partners and our expanding investor base reflect both the quality of our platform and our strategic positioning as a leader in private credit markets."

The partnership underscores a key trend in the financial world: the unstoppable rise of private credit as a cornerstone of institutional portfolios.

The Enduring Magnetism of Private Credit

The Guggenheim-LGT transaction does not exist in a vacuum. It is the latest high-profile deal in a private debt market that has swelled to an estimated $2.5 trillion, with some analysts projecting it could reach $5 trillion by the end of the decade. This explosive growth was initially catalyzed by the retreat of traditional banks from middle-market lending following the 2008 financial crisis and subsequent regulatory tightening. Private credit funds stepped into the breach, offering flexible, bespoke financing solutions that banks could no longer provide.

For institutional investors like pension funds, insurers, and sovereign wealth funds, the asset class offers a compelling proposition: potentially higher yields than traditional fixed income, diversification benefits, and inflation protection through floating-rate loan structures. In an era of volatile public markets, the steady, income-generating nature of private debt has become a powerful magnet for capital.

This deal serves as a case study for that very trend. LGT Capital Partners, a firm managing over USD 120 billion in alternative assets, represents the sophisticated capital that is increasingly allocating to private credit. "This opportunity 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," noted Felix Janssen, Partner and Co-Head of Private Credit Solutions at LGT Capital Partners. His comment highlights the dual appeal: backing a proven originator while also gaining exposure to a curated portfolio of existing loans.

A Partnership Forged for Market Leadership

In the increasingly crowded and competitive private credit landscape, strategic partnerships are becoming a crucial differentiator. The collaboration between Guggenheim and LGT Capital Partners brings together two formidable players, each with distinct strengths that create a powerful synergy.

For Guggenheim, the backing of a globally respected institution like LGT provides more than just capital; it is a powerful endorsement of its underwriting strategy and market position. "We see the continued expansion of our LP relationships as a testament to the strength and differentiation of our platform and underwriting strategy,” commented Joe McCurdy, Head of Origination at Guggenheim Corporate Funding, the firm's private debt investment manager.

For LGT Capital Partners, the deal aligns perfectly with its investment philosophy. The firm is known for building diversified portfolios across a spectrum of private credit strategies, moving beyond simple direct lending to explore asset-backed finance, NAV loans, and secondary transactions. Partnering with Guggenheim allows LGT to deploy capital through a seasoned manager with a deep track record in the U.S. middle market, a core segment of the global private credit universe. This move enables LGT to gain targeted exposure through a platform that has demonstrated its ability to source and manage complex deals.

Under the Hood: Guggenheim's Underwriting Engine

The confidence shown by LGT is rooted in Guggenheim's long and successful history in the private debt space. With a direct lending platform dating back over two decades, the firm has invested more than $25 billion across over 450 middle-market loans. This experience has honed a disciplined and rigorous investment process.

Guggenheim's private debt strategy is powered by an 80-plus member Corporate Credit team, which provides extensive resources for sourcing, research, structuring, and legal execution. The firm focuses on highly negotiated transactions, typically ranging from $30 million to $500 million, in the form of senior secured and unitranche loans. This approach allows Guggenheim to embed stronger covenants, achieve better economics, and maintain greater control compared to the more commoditized broadly syndicated loan market.

The firm's success hinges on two pillars: sourcing and underwriting. By maintaining a consistent and active presence in the market, Guggenheim leverages its scale and reputation to access a wide array of opportunities. Its underwriting process is known for its depth, performing rigorous due diligence not just at the initial closing but through continuous monitoring over the life of the loan. It is this operational engine room that builds the foundation for delivering the attractive, risk-adjusted returns that sophisticated investors now demand.

More Than Just New Capital

Perhaps the most telling aspect of the $250 million vehicle is its mandate to "manage an existing portfolio of loans." This detail, combined with LGT's stated expertise in "acquiring portfolios," suggests the transaction is likely a form of secondary deal or portfolio recapitalization. Rather than simply raising a blind pool of new money, Guggenheim is effectively leveraging its existing assets to unlock liquidity and secure fresh capital for future growth.

This structure is a hallmark of a mature and sophisticated asset manager. It allows the firm to provide a degree of liquidity for earlier investors while bringing in a new strategic partner to support the next phase of expansion. It also provides LGT and other new investors with immediate exposure to a seasoned and diversified portfolio of loans, reducing the "J-curve" effect common in new funds.

As the private credit market continues its rapid expansion, it is also attracting greater scrutiny from regulators focused on valuation transparency and systemic risk. In this environment, transactions that validate existing asset values and are backed by disciplined, well-regarded managers like Guggenheim and LGT are likely to become the gold standard for institutional investors navigating this complex but rewarding asset class.