News & Analysis

Lexington amasses more than $18bn for latest flagship

The vehicle, which is around 30% larger than its predecessor, has been in market for just over two years and is already one of the largest dedicated standalone funds for secondaries.

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Lexington Partners has surpassed the $15 billion target of its latest flagship fund, raising one of the largest secondaries vehicles ever.

Lexington Capital Partners X has secured more than $18.29 billion in commitments so far, according to a filing with the US Securities and Exchange Commission.

The vehicle launched in May 2021 and had amassed $12.8 billion by last November, according to Secondaries Investor data. Investors in the fund include Cathay Life Insurance, Fubon Life Insurance, Minnesota State Board of Investment and New York City Employees’ Retirement System.

It is unclear whether the latest filing represents a final close, and a spokesperson for Lexington declined to comment.

The vehicle’s predecessor Lexington Capital Partners IX closed on $14 billion in 2020, surpassing its $12 billion target, Secondaries Investor data shows.

Amid tough fundraising conditions with market participants saying raises are taking a longer period of time than some thought, the secondaries market has seen an uptick in interest from investors.

Preliminary fundraising data from Secondaries Investor shows that $37.1 billion was raised in final closes across 23 vehicles for private equity secondaries strategies in the first half of this year, accounting for around 12 percent of the $315.5 billion raised for private equity.

In January, Blackstone’s Strategic Partners unit said it had raised a record near-$25 billion for its latest secondaries programme. The New York-headquartered group raised $22.2 billion for Strategic Partners IX, surging past its $13 billion target. The firm also raised $2.7 billion for its inaugural GP-led focused fund Strategic Partners GP Solutions.

The fund is twice as large as its predecessor, which raised $11.1 billion in 2019 and did not have a dedicated GP-led vehicle alongside it.

Fellow secondaries heavyweight Ardian has amassed $20 billion for Ardian Secondary Fund IX, the FT has reported. The vehicle launched in February 2022, according to Secondaries Investor data.