Lexington closes mid-market fund on $1bn

The New York-based firm has already deployed 40% of Fund III's capital in 10 transactions, four of which have been with banks and financial institutions.

Lexington Partners has closed its Lexington Middle Market Investors III on $1.07 billion, according to a statement.

Fund III launched last year with a $750 million target and received commitments from more than 50 limited partners such as global endowments, foundations and high-net-worth individuals.

LPs in the fund include the Florida State Board of Administration, the West Yorkshire Pension Fund and the Town of Fairfield Pension, according to PEI’s Research and Analytics division.

Lexington has already deployed 40 percent of Fund III’s capital in four transactions with banks and financial institutions, three deals with pension and sovereign wealth funds and three deals asset management firms, according to the statement. The firm will also help facilitate the spin-out of established private equity teams from banks and financial institutions. Brent Nicklas

“Lexington Middle Market Investors has quadrupled in size since we began the programme 10 years ago,” Lexington managing partner Brent Nicklas said in the statement. “The strategy is innovative because it allows large investors, interested in efficient middle market exposure, to benefit from favourable secondary market opportunities.”

Amid closing Fund III, Lexington has also launched Lexington Emerging Partners – a $150 million managed account to acquire young mid-market buyout interests in Asian and Latin American funds.

Lexington is also in market with its global flagship fund Lexington Capital Partners VIII. The fund launched in September 2013 with an $8 billion target, according to PEI data. The fund had collected more than $5.5 billion from LPs including the New Hampshire Retirement System, the City of Manchester Employees’ Contributory Retirement System and the Teachers’ Retirement System of the City of New York.