Lexington seeks $2bn for mid-market Fund IV

The fund's target is almost three times that of its predecessor, the 2013-vintage Lexington Middle Market Investors III, which closed on about $1bn.

Lexington Partners is seeking almost three times the target of its predecessor mid-market fund with its latest vehicle, according to a filing with the US Securities and Exchange Commission.

The New York-headquartered secondaries firm hopes to raise $2 billion for Lexington Middle Market Investors IV, according to the filing, which lists Compass Group Global Advisors, Baro Investment & Securities and Crosspoint Advisors as helping to place the fund.

Investors in the fund include Taiwan Life, which committed up to $50 million, according to a filing with the Taiwan Stock Exchange. The insurer had told PEI Research & Analytics in September it was interested in committing to secondaries and mezzanine debt funds from managers with good track records.

Lexington’s predecessor vehicle, Lexington Middle Market Investors III, beat its $750 million target to close on $1.07 billion in June 2014 after 18 months of fundraising, according to PEI data. The fund received commitments from investors including North Carolina State Treasury, Florida State Board of Administration and Massachusetts Bay Transportation Authority Retirement Fund.

Lexington Middle Market Investors III delivered a 1.14x multiple and a 12.4 percent internal rate of return as of 31 March, according to a performance document from the Florida State Board of Administration.

Lexington declined to comment.