This material has been prepared for informational purposes only and should not be construed as investment, legal, or tax advice. It does not constitute an offer, recommendation, or solicitation to buy or sell any security or other financial instrument, nor should any information contained herein be relied upon for the purpose of making investment decisions.
Past performance is not indicative of future results, and the value of investments may fall as well as rise. While the information contained herein is believed to be reliable, no representation or warranty, express or implied, is made regarding its accuracy or completeness.
The opinions expressed are those of the author and are subject to change without notice. They do not necessarily reflect the views or official position of the institution or its affiliates.
Valentine’s Day is usually reserved for flowers, chocolates and grand gestures. However, for those who spend more time thinking about portfolios rather than poetry, affection is earned in quieter, more enduring ways.
At LGB, one such relationship is with the LGB SME Private Debt Fund. Launched in 2016, at a time when LGB was still in the early stages of building its fixed income capabilities, the fund marked an important milestone. It was an exciting moment for those involved, underpinned by the conviction that we were creating something designed for long-term growth and careful stewardship.
Since then, the fund has compounded steadily – sometimes gradually, always consistently. Like any lasting partnership, its strength lies in structure, trust and resilience through changing tax regimes, economic cycles and evolving investor priorities. The consistent returns delivered since launch are a testament to that durability.
So, as February 14th rolls around once again, here are three reasons to appreciate the LGB SME Fund this Valentine’s Day.
In investing, as in relationships, patience is often rewarded. One of the fund’s most attractive features is its offshore roll-up structure, which allows returns to compound interest gross, i.e. without the deduction of income tax. In 2016, the fund launched at £100 per share, as at 31 January 2026 this has grown to £190.67. Over the near ten years since establishment, this has produced an annualised return of 6.90% per annum.
Rather than distributing interest income, returns are re-invested automatically within the fund. Tax is only payable when an investor chooses to realise their shares, allowing capital to grow more efficiently over time. This structure has become increasingly relevant as the UK tax policy remains in flux. With further fiscal tightening widely anticipated ahead of the Spring Budget and pension assets due to fall within the inheritance tax net from April 2027, investors are increasingly focused on when income crystallises, not just how much is earned.
For investors looking to grow capital in a tax-efficient way, the LGB SME Private Debt Fund rewards commitment and a long-term perspective.
At the heart of any enduring investment relationship is trust – in this case earned through disciplined underwriting, robust structures, and a clear understanding of risk.
The LGB SME Private Debt Fund invests primarily in secured medium-term note (MTN) programmes arranged by LGB Capital Markets, with selective exposure to public securities for diversification. LGB Investments acts as the investment adviser to the Guernsey-based manager, ensuring alignment with LGB’s established credit expertise.
The portfolio is well-diversified by issuer, sector and maturity, currently holding 52 MTN and note issues from 15 different issuers, with over 60% maturing within the next two years. This laddered approach is designed to generate regular cash flows, which can be re-invested through the regular new issues under LGB’s active MTN programmes. Further detail is available in the latest fund fact sheet, from 31 January 2026, can be found here.
Consistency and transparency are central to the strategy – qualities that matter in investing as much as they do elsewhere.
The strongest relationships combine adaptability with structure. From an investor’s perspective, that means a portfolio with natural liquidity, i.e. coming from interest payments and redemptions, rather than from secondary markets which can be more volatile.
The LGB SME Private Debt Fund offers monthly subscriptions and redemptions, with a clearly defined NAV that is calculated and published at each month-end. Subscriptions are made at NAV, with a minimum initial investment of £20,000, and are available via the LGB Investment Platform or via an investment account at Heritage Capital Management Limited.
Liquidity is carefully managed through a combination of scheduled maturities, amortisation, and a minimum cash buffer of 5%. Fees are transparent and aligned with investor outcomes, with no upfront charge and a performance fee that applies only if the NAV exceeds its previous high.
Alongside this investor flexibility sits disciplined portfolio management. The LGB Investments team systematically redeploys interest income, repayments and new subscriptions into a diversified, laddered portfolio, ensuring capital is consistently put to work while maintaining position sizing control. Investors retain control over access to their capital while LGB maintains structure, balance and continuity within the fund.
Incentives, as ever, matter – and here they are carefully structured.
The LGB SME Private Debt Fund is not designed to sweep you off your feet with dramatic gestures. Instead, it offers dependability: a clear roll-up structure, disciplined credit approach and focus on steady, compounding returns. This is reflected in the fund’s average holding period which well exceed three years.
This Valentine’s Day, while others focus on fleeting gestures, we are reminded that the strongest investment relationships are built on trust, consistency and realistic expectations.
Not everything needs to be exciting. Some things just need to work – year after year.
The LGB SME Private Debt Fund is authorised by the Guernsey Financial Services Commission and is available in the UK on a restricted basis to Investment Professionals, High Net Worth Investors and Sophisticated Investors (read the client classification specifics here). If you do not have an account and are interested in investing, simply fill in the form below and we would be delighted to speak with you.
Transaction Manager
Alexia Rottet joined LGB in October 2025 as a Transaction Manager. Prior to LGB, she gained real estate experience by participating in the valuation of a property portfolio for A2immo.ch SA as a financial analyst, as well as working at Form Structural Design as an office manager. Alexia holds an MA in Entrepreneurship and Innovation and a BA in International Relations.
Assistant Relationship Manager
Ruby joined LGB in December 2024 as an Assistant Relationship Manager for our investing clients. Prior to LGB, Ruby worked at FHIRST, a start-up where she collaborated with the co-founders on revenue growth and improving client experiences. Ruby graduated with a First-Class degree in History from Durham University.
Finance Manager
Following a degree reading Chemistry at The Queen’s College, Oxford, Antonia trained to become a chartered accountant at a London-based audit firm. She then moved into the tax sector joining EY and completing the chartered tax adviser qualification. She then gained further experience working as a finance director within industry at a family office / hedge fund.
Programme size: £20m
Establishment Date: December 2017
Number of issues: 12
Sector: Marine tracking
Focus: Maritime surveillance and management
Programme size: £25m
Establishment Date: XX 2017
Number of issues: 20
Sector: Financial services
Focus: Loans and leasing
Associate Director
Omar joined LGB in February 2026 as an Associate Director in the Capital Markets team. He brings over five years of experience from NatWest, where he worked across the Leveraged Finance Origination and Portfolio Management teams. During this time, he supported a broad range of businesses from venture-backed to large-cap companies, with a primary focus on the mid-market. His experience was sector agnostic, and the majority of the companies he worked with were sponsor-backed, giving him extensive exposure to private equity-led transactions and capital structures. Omar holds a degree in Accounting and Finance from The London School of Economics & Political Science and is a Chartered Banker.
Adviser
Charles has played an important role in developing LGB & Co.’s investment approach by encouraging a focus on investing in businesses with strong IP or know-how with recurring revenue business models that can prosper throughout economic cycles. Charles brings over 30 years’ experience of investing in privately-owned and publicly-listed small and mid-market companies. He is a director of Larpent Newton & Co. and Hygea VCT plc. Charles qualified as a Chartered Accountant at Peat Marwick, now part of KPMG.
Adviser
Lisa has worked with LGB since 2015 in supporting the on-going cultural and organisational development of the firm, providing advice on strategic people matters. Since 2006, Lisa has been running her own consultancy and executive coaching business, People Possibilities Ltd. Her work is focused on supporting clients at an organisational, team and individual level to enable high performance,improve leadership capability and effect cultural and behavioural change. Previously Lisa has held senior HR leadership positions with Schroders, ABN AMRO and HSBC. Lisa graduated from the University of Birmingham with an honours degree in International Relations & French. She is a Fellow of the Chartered Institute of Personnel and Development (CIPD) and a qualified Executive Coach.
Chairman
Simon became non-executive Chairman of the Board of LGB & Co. with a focus on growth and strategic initiatives in December 2025. Simon has extensive experience in capital markets and wealth management. He previously ran the client and investment business of Heartwood and became Chief Executive in 2008. He led its well-regarded acquisition by Handelsbanken in 2013. Simon subsequently became NED and Chair of AIM-listed WH Ireland Group PLC. He was also asked to represent the wealth management sector on the FCA Smaller Business Practitioner Panel from 2013-2016.
Capital Markets Director
Fergus advises corporate clients looking to raise debt and equity capital. He is also responsible for the execution and ongoing management of LGB’s MTN Programmes. Fergus joined LGB in 2019 having started his career at Lloyds Banking Group on the graduate training programme, before moving to the Leveraged Finance division, where he focused on transactions with mid-market corporates and PE firms. Fergus holds an MSc in Petroleum Geology from the University of Aberdeen.
Associate Director
Megan joined LGB in 2021 as a Relationship Manager. She is responsible for all day-to-day transactions with investment clients and oversees the LGB Investments Platform and Deal Hub. Prior to LGB, Megan worked at Puma Investments, a tax-efficient investment provider, in the sales and investor services team. Megan graduated from the University of Bath with a Bachelor of Science degree in Psychology, and has obtained the CISI Level 4 Diploma in Investment Advice.
Investment Director
Ivan is LGB’s Investment Director: he is responsible for developing LGB’s investment proposition in the context of the broader market and economic developments. He regularly meets individual company management teams to seek out and monitor investment opportunities. Ivan has served as a senior adviser to the Equity Division of Société Générale, and was previously Managing Director in charge of equity sales for them in London. Earlier in his career, Ivan worked at Morgan Stanley, Lazards and Schroders. He has degrees in history from Cambridge University & London University, and an MBA from Cass Business School.
Managing Director
Simone joined LGB in 2012 and is responsible for LGB & Co.’s business with institutional investors, wealth managers and sophisticated private investors. Simone’s team provides access to a range of compelling investment opportunities with a particular emphasis on structuring laddered portfolios of fixed income. In addition, the team manages portfolios of clients who have entered into advisory agreements with LGB Investments, and advises the fund managers of the Guernsey-based LGB SME Private Debt Fund. Prior to joining LGB & Co., Simone worked in the institutional fixed income department of Citigroup Global Markets. She began her career at Citigroup Private Bank in Geneva. Simone graduated from the University of Lausanne with a degree in HEC, Business Administration. She is a Chartered Member of the Chartered Institute for Securities & Investments and a Director of LGB.
CEO
Cedric was appointed CEO in July 2022 after a period of 18 months as a COO. Cedric spent 15 years working on the energy and commodities sales and trading desks for global banks (BNP Paribas, BAML and MUFG). He gained extensive international exposure, being based in London and Singapore and covering transactions in all geographic regions. Cedric graduated from Global Executive MBA at INSEAD in 2018 and started working in the capital markets space for growth-stage companies. He is also a director of LGB.
Managing Director, Capital Markets
Andrew founded LGB & Co. in 2005 and is managing the Capital Markets team. He has a particular focus on the development of strategic relationships with corporate clients and business partners. Prior to founding LGB & Co., Andrew was a Managing Director at Citigroup Global Markets, where he was responsible for its fixed-income business with private banks and retail institutions. Earlier in his career Andrew worked at Schroders in London and Tokyo. Andrew graduated from Oxford University with a degree in Modern History. He is a chartered member of the Chartered Institute for Securities & Investment.