Lexington tops $7 bln for eighth flagship fund

Secondary specialist Lexington Partners has topped $7 billion in commitments for its eighth flagship fund, with expectations of wrapping up the effort in April.

Lexington Capital Partners VIII LP has drawn in $6.37 billion from 261 investors, with a date of first sale of Jan. 17, 2014, according to a Form D filing with the SEC. The firm also has raised an additional $900 million in a side vehicle and for other investments, according to the same filing.

The New York-based firm said it expects the offering to end on or before April 17, the filing said.

Lexington did not immediately respond to an email seeking comment.

If Lexington Partners hits its $8 billion target, it will surpass by about $1 billion the vintage 2009 Lexington Capital Partners VII, which raised $7.1 billion. That pool rang up an IRR of 23.3 percent as of Sept. 30 for the Indiana Public Retirement System, according to pension fund data compiled by PE data firm Bison.

Lexington Capital Partners VI closed on $3.8 billion in 2005 and generated an IRR of 7.2 percent as of Sept. 30. Lexington Capital Partners V raised $2 billion in 2001 and had an IRR of 18.9 percent as of June 30.

Besides Indiana, past LPs for Lexington Partners include the Boston City Retirement System, the California Public Employees’ Retirement System, and the Florida State Board of Administration.

In one high-profile deal announced in August, Lexington Partners teamed up with AlpInvest Partners to buy 50 percent of the portfolio companies held by One Equity Partners, the private equity unit of J.P. Morgan Chase & Co.

On the fundraising front, Lexington Partners closed Lexington Middle Market Investors III at $1.1 billion, last year.

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