U of Houston re-ups with Lexington

The endowment has committed $10m to its latest flagship fund, which is seeking $12bn for secondaries.

University of Houston System has invested in Lexington Partners‘ latest flagship secondaries fund, the second time it has linked up with the firm.

The university endowment, which had $702 million in assets under managementat the end of the first quarter, has committed $10 million to Lexington Capital Partners IX, according to a webcast of its investment committee meeting.

This follows an undisclosed investment it made in predecessor Fund VIII, which hit final close on $10.1 billion in 2015 after around a year-and-a-half in market, according to PEI data.

That fund has returned a total value to paid-in multiple of 1.32x and an internal rate of return of 27.9 percent as of the end of December, according to meeting documents prepared by Florida State Board of Administration.

Lexington Capital Partners IX launched in February seeking $12 billion, one of a handful of large secondaries firms to return to market in the first half.

University of Houston System can allocate between 5 percent and 20 percent to private equity and 5 percent and 15 percent to venture capital, according to its investment policies and objectives document.  Its exposure stands at 8.5 percent.

The endowment has also invested in HarbourVest Partners’ 2015-vintage Dover Street IX and 2011-vintage Dover Street VIII secondaries funds.