Lexington hits $10bn mark for latest secondaries fund – exclusive

The secondaries giant is closing in on the target of Lexington Capital Partners IX in what could be the biggest fund dedicated to the strategy so far.

Lexington Partners is closing in on the target of its latest secondaries fund in what would be the largest pool of capital ever raised for the strategy, Secondaries Investor has learned.

The New York-headquartered firm had raised $10 billion for Lexington Capital Partners IX as of late April, nearing the fund’s $12 billion target, according to two sources familiar with the fundraise.

Lexington has deployed around $2.5 billion of the fund so far, the majority via LP stake transactions, one of the sources said.

If the fund closes on target it will be 11 percent bigger than the current largest secondaries fund – Ardian’s ASF VII – which raised $10.8 billion.

Investors who have committed to LCP IX include Florida State Board of Administration with $250 million, Minnesota State Board of Investment with $150 million and Taiwan Life Insurance with $100 million, according to Secondaries Investor data.

Paris-headquartered Ardian is seeking a total $18 billion for its latest flagship secondaries programme, ASF VIII, which includes a $6 billion co-investment pocket, as Secondaries Investor reported in February.

Ardian emerged as the buyer of Norinchukin’s $5 billion private markets portfolio sale – the largest such disposal – sister publication Buyouts reported on Monday.

Secondaries funds were seeking at least $84.85 billion in total across 43 vehicles with known targets as of the end of April, according to Secondaries Investor data.

Lexington declined to comment.