Lexington Partners has launched its ninth flagship secondaries vehicle, becoming the first of a number of big firms set to return to the market this year.
The New York-headquartered firm registered Lexington Capital Partners IX in Delaware on 12 February, according to a public filing. The fund’s target is around $12 billion, two sources familiar with the fundraise told Secondaries Investor.
Lexington declined to comment.
Minnesota State Board of Investment’s investment advisory council recommended a $150 million commitment be made to the fund at its 12 February meeting, pending approval from the state board of investments, according to the pension’s website.
Lexington’s last secondaries fund was its fourth mid-market vehicle which targets US mid-sized US buyout funds that are less than 50 percent invested. It closed above target on $2.66 billion in September.
The firm’s last flagship fund closed in April 2015 on $10.1 billion, above its target of $8 billion, after around 19 months in market, according to PEI data.
The Wall Street Journal first reported that Fund IX’s target was $12 billion.
Investors in the fund include Alaska Retirement Management Board, Florida State Board of Administration and Houston Police Officers’ Pension System.
This year is likely to be highly competitive in the secondaries fundraising market. In December Secondaries Investor reported that Ardian was planning to raise a mature secondaries fund targeting at least $8 billion in the second half of 2018.
In January Coller Capital hired rainmaker Remy Kawkabani as the firm plots a likely return to market this year. Its $7.2 billion Fund VII, which closed at the end of 2015, is understood to be nearly fully committed.