Lexington Partners crosses $3B mark

Lexington Partners has closed on $3.1 billion in capital commitments toward its seventh fund, according to regulatory filings.

The New York-based secondaries firm launched fund-raising for Lexington Capital Partners VII in early 2008 with a $5 billion target.

As of mid-March, the firm had secured nearly $2.4 billion in commitments from 91 U.S.-based investors and more than $730 million in commitments from 48 overseas investors, for a combined tally of $3.1 billion. Park Hill is serving as placement agent.

The firm’s prior fund, Lexington Capital Partners VI closed in 2005-2007 with $3.8 billion in commitments.

Lexington Partners acquires interests in buyout, mezzanine and venture capital funds as well as portfolios of direct minority interests. The firm’s investment size ranges from single-interest deals to billion-dollar portfolio acquisitions. Founded in 1994, the firm also manages co-investment funds.

The firm faces competition in a market when excitement around the secondary market has faded. Last year, Goldman Sachs and Harbourvest Partners closed large dedicated secondary funds, raising $5.25 billion and $2.9 billion, respectively. If Landmark met its $5 billion target, it would be the second largest secondary fund ever raised.

Other secondary funds in the market include Pantheon International, which is seeking $7.25 billion. As of December, the firm had closed on $950 million.

Landmark Partners is also in the market with a $2 billion fund. The firm had closed on $1.5 billion in December with plans to hold a final close in Q1 of this year.

Lexington did not return calls for comment. —Erin Griffith