The secondaries firm acquired stakes in the 2007-vintage Lion Capital II, 2010-vintage Fund III and 2016-vintage Fund IV from three vehicles backed by Lion and Houston-based investment firm Carson Private Capital, according to public filings in the UK. These vehicles are,
- Carson Private Capital/Lion Fund II
- Carson Private Capital/Lion Fund III
- Carson Private Capital/Lion Fund IV
Lexington acquired whole stakes in funds II and II, split between LCP VIII Holdings (67 percent) and LMMI IV Holdings (33 percent). These vehicles are linked to 2014-vintage, $10.1 billion Lexington Capital Partners VIII and 2016-vintage, $2.66 billion Lexington Middle Market IV. The stake in Lion’s fourth fund was partial and split 8.8 percent and 4.13 percent between the two vehicles.
London-headquartered Lion Capital is a consumer-focused buyout firm. The three funds combined hold 19 assets, according to the firm’s website, including UK frozen food manufacturer Findus in Fund II, US luxury trainer manufacturer Buscemi in Fund III and UK sports nutrition seller Grenade in Fund IV.
Lion Capital Fund II raised €2.02 billion by final close in February 2008. The follow-up funds raised €1.55 billion and $1.04 billion, below their respective targets of €2 billion and $1.5 billion, according to PEI data.
According to data published by Oregon Public Employees Retirement Fund, Fund II returned a multiple of 0.68x and Fund III of 1.29x as of 31 December. The comparative figure for Fund IV is not clear.
Carson Private Capital has made commitments of more than $14 billion on behalf of family offices and high-net-worth individuals. Since 1998 it has invested $740 million in five funds and 12 direct co-investments with Lion Capital, its website notes.
Lexington is currently in market seeking $12 billion for its ninth flagship secondaries fund. Secondaries Investor revealed in July that the firm is set to hold a first close in the autumn on between $9 billion and $10 billion.
Lexington and Lion did not wish to comment. Carson did not return a request for comment.