The Texas pension fund will commit between $25 million and $35 million to Lexington Middle Market Investors IV, according to minutes from HPOPS’s 8 December board of trustees meeting.
New York-headquartered Lexington is seeking $2 billion for the fund, which launched in September and has collected at least $190 million, according to PEI data.
Investors in the fund include Minnesota State Board of Investment which committed $100 million, and Taiwan Life, which committed up to $50 million, according to PEI data.
The fund is almost twice the size of its predecessor mid-market fund, which closed on $1.1 billion in June 2014.
Lexington Middle Market Investors III was delivering a 1.17x multiple and a 12.1 percent net internal rate of return as of 30 June, according to a performance document from the Florida State Board of Administration.
HPOPS has an appetite for secondaries: the pension previously invested in Lexington’s flagship secondaries vehicle, the 2014-vintage Lexington Capital Partners VIII, with a $20 million commitment, and has also committed to other secondaries funds including Ardian’s 2015-vintage ASF VII fund and Blackstone’s 2015-vintage Strategic Partners Fund VII, PEI data show.
HPOPS had just over $45 million invested in secondaries at the end of June, according to the fund’s most recent financial statement.
Founded in 1947, HPOPS has $4.3 billion in assets under management.