Lexington Partners is aiming to raise $8 billion for its latest secondaries fund, according to an SEC filing. If reached, the fund would be the largest private equity secondaries vehicle ever raised, topping two big fundraises—AXA Secondary Fund V ($7.1 billion) and Lexington Capital Partners VII ($7 billion).
Large secondaries funds and funds-of-funds in recent years have performed quite well. Lexington's previous fund, the $7 billion vehicle closed in 2011, has notched an 18.61% IRR as of June 30, 2013. Overall, the five largest secondaries funds and funds-of-funds ever raised have an average IRR of 34.82% as of June 30. HarbourVest Partners' Dover Street VIII, a fund that closed last July, is off to a particularly strong start at a 73.61% IRR. For a more detailed look at how well billion-dollar, 2005 and later vintage secondaries funds and funds-of-funds are performing, including their IRRs, click here.