Landmark smashes latest PE fund target with $7bn raise – updated

The close of Landmark Equity Partners XVI, which had a $4.75bn hard-cap, brings the firm's total committed capital to $27bn.

Landmark Partners has exceeded the hard-cap on its latest private equity secondaries fund, collecting $7 billion including capital from co-investment vehicles.

Landmark Equity Partners XVI, which was targeting $4 billion, held its final close last Friday, according to a statement from the firm obtained exclusively by Secondaries Investor.

Its hard-cap was $4.75 billion, according to documents prepared for State of Connecticut Retirement Funds and Trust Funds by financial advisor StepStone Group.

LEP XVI has already committed $2.8 billion across 17 secondaries deals, said Francisco Borges, Landmark chairman and managing partner.

Global public pensions, corporate pensions, insurance companies, asset managers and foundations committed to the fund.

Landmark now has around $27 billion in total committed capital, according to the statement.

Fund XVI launched in September 2016, Secondaries Investor understands. It hit a $2.42 billion first close in December last year. Investors include Employees Retirement System of Texas, Employees’ Retirement System of the State of Hawaii and Hartford Municipal Employees Retirement Fund.

Predecessor Fund XV raised $3.25 billion, above its target of $2.5 billion, by final close in 2015. Fund XV is fully deployed.

The life of Landmark Equity Partners XVI is 14 years, with two optional extra years that can be activated only at the general partner’s discretion, Secondaries Investor reported in January. A management fee equal to 1 percent of NAV is charged through to year 16 of the fund.

In late September, the firm confirmed that it backed the restructuring of PAI Partners’ €2.69 billion, 2005-vintage Fund IV – a deal first covered by Secondaries Investor in August.

The firm also made a $350 million preferred equity investment in Stonepeak Infrastructure Partners’ $7.2 billion third infrastructure fund, which closed in July.

Going into 2018, two of the four largest secondaries funds in market were managed by Landmark. In April, its Real Estate Fund VIII hit final close on $3.3 billion – nearly double the amount raised for the previous fund in the series.

Article updated to reflect that the fund was launched in September 2016