Secondaries Increasingly a Primary Matter for Investors
April 22, 2015
Lexington Partners has announced the final close of Lexington Capital Partners VIII with $10.1 billion in commitments, making it the largest dedicated secondary acquisition fund ever raised. Closing at its hard cap, the vehicle will seek to acquire global PE and alternative assets through secondary market transactions including balance sheet spin-outs, equity co-investments and hedge fund PE purchases, as well as investments in new PE funds. Lexington has also established a $1.75 billion credit facility that will provide LCP VIII additional transaction flexibility.
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Secondaries have become increasingly popular of late, and according to the PitchBook Platform, the numbers of dedicated secondaries funds closed in 2014 reached lofty heights in count and value. As covered here previously, some of the benefits of secondaries funds include faster distributions and being able to buy proven funds at a discount to NAV. The perks are clearly no secret to Lexington, which, along with Ardian (fka AXA Private Equity), has raised some of the largest secondaries funds to date: