Research & Data

Lexington’s funds’ performance details disclosed

The firm's best performing secondaries vehicle by investment return is its 2000-vintage Lexington Capital Partners IV, documents from a US pension show.

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Lexington Partners‘ 2000-vintage flagship fund is the firm’s best performing secondaries vehicle by investment multiple, according to a performance document from a US pension fund.

The New York-headquartered firm’s $606 million Lexington Capital Partners IV had a 1.8x net multiple on invested capital and a 19.3 percent net internal rate of return as of 30 June, according to a November investment advisory council report for the Minnesota State Board of Investment, obtained by Secondaries Investor.

According to the document, Lexington’s best performing secondaries fund by net IRR is its 2014-vintage eighth flagship fund, at 27.3 percent. Lexington Capital Partners VIII, which raised $10.1 billion and which was the largest dedicated secondaries fund when it closed, returned a 1.3x multiple as of the same date.

All of the firm’s flagship and mid-market secondaries funds’ performance details were disclosed in the document:

Fund Vintage Size Net IRR Net MOIC
Lexington Middle Market Investors I 2005 $556m 11.3% 1.6
Lexington Middle Market Investors II 2009 $650m 14% 1.4
Lexington Middle Market Investors III 2013 $1.1bn 14.4% 1.2
Lexington Capital Partners I 1996 $242m 13.1% 1.3
Lexington Capital Partners II 1998 $1.1bn 8.2% 1.3
Lexington Capital Partners III 1999 $656m 8.7% 1.3
Lexington Capital Partners IV 2000 $606m 19.3% 1.8
Lexington Capital Partners V 2002 $2bn 19% 1.7
Lexington Capital Partners VI 2006 $3.8bn 7.8% 1.4
Lexington Capital Partners VII 2010 $7.1bn 15.8% 1.5
Lexington Capital Partners VIII 2014 $10.1bn 27.3% 1.3

Source: Figures for LCP VI-VIII provided by State Street. Other fund returns provided by Lexington to SBI.

The terms for Lexington’s Middle Market Investors IV, which has a $2 billion target, were also outlined in the document, as Secondaries Investor previously reported.

Lexington declined to comment.