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Private Equity

The five largest secondary funds in the market

Lexington Partners’ eye-catching $22.7 billion secondary fund gave 20204 a kickstart. The buzz surrounding the secondary market suggests another boom year for this asset class. There are 134 secondary funds in the market seeking fresh capital. The largest one to watch is Ardian Secondary Fund IX, which has a target of $25 billion. We have compiled a list of the five largest secondary vehicles that are currently open, ranked by their fundraising targets.

The year in secondaries kicked off with a gigantic fundraising haul: Lexington Partners grabbed headlines with its eye-popping $22.7 billion fund, which closed on Jan. 9.

This ranks as the largest pool ever raised for investments in second-hand stakes in private assets, beating Blackstone‘s $22.2 billion secondary fund closed a year ago, according to PitchBook data.

Alongside this news, there are a string of fresh reports of other secondary buyers having amassed or looking to raise funds targeting secondary deals. Banner Ridge Partners, a boutique PE firm, this month wrapped up a secondary fund at its $2.15 billion hard cap. Apollo Global Management is seeking $2 billion for its sophomore fund dedicated to secondary investments in private credit, Bloomberg reported.

The buzz about the secondary market has signaled that 2024 is poised to be another boom year for secondary transactions, as GPs and LPs frantically search for liquidity solutions that allow them to recapitalize existing assets when the path for traditional exits remains bumpy.

The capital raised by global secondary funds in the first three quarters of 2023 reached $68.1 billion, surpassing the total capital raised for every year except 2020, according to PitchBook’s Q3 2023 Global Private Market Fundraising report.

There are 134 secondary funds currently looking for capital, PitchBook data shows. The largest one to watch is Ardian Secondary Fund IX, which has a target of $25 billion and has reportedly raised more than $20 billion.

Here is a complete list of the five largest secondary vehicles in the market, ranked by their fundraising targets.

 

Featured image by Eugene Mymrin/Getty Images

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