KBRA Affirms and Subsequently Withdraws the Rating Assigned to BNP Paribas' Participation in a Subscription Facility to Crown Global Secondaries VI
27 Mar 2026 | London
KBRA UK (KBRA) affirms and subsequently withdraws the AA- rating assigned to BNP Paribas' $225.0 million commitment in a $1,300.0 million subscription facility (the “Facility”) to Crown Global Secondaries VI Master SCSp ("CGS VI" or the “Fund”). The rating and withdrawal were requested by BNP Paribas as a participating lender in the transaction. The rating action reflects the Fund's stable performance and strong credit quality of the Limited Partner (LP) base since the previous surveillance.
The Facility is a multi-currency $1,300.0 million revolving credit facility. In January 2026, the maturity date of the Facility was extended from February 2026 to February 2027, with option of additional extensions at Lenders' discretion. The purpose of the Facility is for working capital, making investments, hedging, fees and other uses consistent with the Fund's investment policies and as any other purpose permitted under the fund documents, as well as for investor distributions, subject to certain limits.
The Fund is the sixth vintage in LGT Capital Partner's ("LGT CP") flagship secondaries strategy, targeting mid-sized transactions, predominantly in the buyout stage across the US, Europe and Asia. LGT CP is an alternative investment specialist offering a wide range of investment programs focusing on private markets, liquid alternatives and multi-asset class solutions. The core team began investing in private markets in 1997, and in November 2000, they founded LGT CP, based in Pfaeffikon, Switzerland. As of January 2026, LGT CP has more than $110 billion in assets under management, with offices in Switzerland, New York, Dublin, London, Vaduz, Paris, Frankfurt, The Hague, Luxembourg, Dubai, Beijing, Hong Kong, Tokyo, Singapore, San Francisco and Sydney. LGT CP's international team of over 900 professionals serves more than 700 institutional clients in 50 countries.
Key Credit Considerations
Financial Covenants and Structural Features: The primary collateral and source of repayment for the Facility is the uncalled committed capital (UCC) of the Fund from the underlying LPs. The Excess Amount is the amount by which the aggregate amount of Financial Indebtedness exceeds (i) the aggregate amount of the UCC of all Included LPs, divided by (ii) (a) 140% when less than 50% of the total Fund Commitments have been drawn or (ii) (b) 125% when more than or equal to 50% of the total Fund Commitments have been drawn, less (iii) the FX Reserve Amount. There is a 15-business day cure period for a breach of the financial covenant, following which it triggers an Event of Default. The Lenders also have security over the rights of the general partner (GP) or Manager to issue capital calls further to a continuing Event of Default. As of the most recent information provided by BNP Paribas as of December 2025, the Borrower is in compliance with the financial covenant.
Alignment of Interests: A failure to fulfil a capital call can result in the defaulting LP losing rights to distributions from the Fund and restrictions from investing in future private capital opportunities. Furthermore, in the event an LP defaults with respect to their obligation to meet capital contributions, the defaulting LP is subject to the application of various default provisions. Such provisions include but are not limited to (i) causing the income and capital accounts of the defaulting LP to be forfeited; (ii) offering whole or part of the defaulting LPs' interest; and (iii) suspending distributions to the defaulting LPs. These provisions are strong incentives for LPs to meet capital calls.
Credit Quality of LP Commitments: KBRA’s assessment of the credit quality of the LPs comprising the Fund was evaluated using (i) for rated entities, the ratings assigned to the relevant LP or parent entity by KBRA or where a KBRA rating is not available, the public rating assigned by another rating agency and (ii) for unrated entities, KBRA's evaluation of the relevant LP's credit quality. Overall, the credit quality of the LP base is broadly in line with the previous surveillance.
Diversification of LP Commitments: The diversification of the LPs’ commitments is determined utilising an adjusted Herfindahl-Hirschman Index (“adjusted HHI”). The diversification of the LP base is broadly in line with the previous surveillance.
Additional Claim to Distributions/Illiquid Assets: To the extent that some or all of the LPs default on their obligation to fulfil capital calls and repay the Facility, the Lender may have recourse to other assets of the Fund (as an unsecured creditor of the Fund). While this is credit positive and offers a secondary repayment source for this Facility, the assets of the Fund consist of LP interests in other funds which KBRA views as complex and illiquid relative to other asset classes and there is no certainty with regards to the ability of the Fund to sell and realise sufficient value from these assets.
Quantitative Rating Determinants
Asset Quality: KBRA determined the asset quality based on the blended quality of the LPs’ credit quality and the equity risk of the distributions. This blended approach to derive the weighted average asset quality reflects the idiosyncratic nature of LP capital commitments and distributions to the Fund’s LPs, as well as the primarily investment grade LP base and the exposure to equity. Offsetting this asset quality determination is the asset base which would support the repayment of the Facility, as discussed in the asset coverage determinant.
Asset Coverage: Asset coverage is calculated assuming the maximum permitted Facility draw, in compliance with the covenants of the Facility Agreement. At the current commitment level, the Facility requires indebtedness to be covered by at least 140% in uncalled commitments from Included LPs. In the Asset Coverage calculation, KBRA includes both the uncalled capital and adding an assumed maximum full draw on the Facility. Under these assumptions, the asset coverage calculated against all LPs of the Fund is greater than 300%.
Liquidity: As the Fund makes investments, the principal source of collateral value and debt service shifts from the UCC (which is considered more liquid, with known contractual value and short time to fund) earlier in the Fund’s life to a greater reliance on the investment value of assets in the Fund itself (considered less liquid, with limited price transparency, greater complexity and uncertain realisation timing).
Duration: Duration has been determined based upon the term of the Facility, maturing in February 2027, subject to extensions.
Cash Flow Analysis: The primary source of repayment for subscription facilities consists of LP pledges to pay commitment amounts; the Lender is paid only when the LPs remit their payments. In any case, should an LP fail to pay, the Limited Partnership Agreement places the burden of payment on the remaining LPs on a pro rata basis. Therefore, KBRA analyses repayment capacity in the context of the quantitative determinants described above.
Qualitative Factors
Manager Review: LGT CP is an alternative investment specialist offering a wide range of investment programs focusing on private markets, liquid alternatives and multi-asset class solutions. The core team began investing in private markets in 1997, and in November 2000, they founded LGT CP, based in Pfaeffikon, Switzerland. As of January 2026, LGT CP has more than $110 billion in assets under management, with offices in Switzerland, New York, Dublin, London, Vaduz, Paris, Frankfurt, The Hague, Luxembourg, Dubai, Beijing, Hong Kong, Tokyo, Singapore, San Francisco and Sydney. LGT CP's international team of over 900 professionals serves more than 700 institutional clients in 50 countries.
Other Qualitative Factors: There have not been any changes since the previous surveillance.
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