Lexington Closes Giant Co-Investment Fund

Lexington Partners has held a final close of Lexington Co-Investment Partners V LP (CIP V) with total committed capital of $3.2 billion. Lexington’s new fund beat its initial $3 billion hard cap and is one of the largest co-investment funds ever raised.

CIP V will make co-investments in private equity led transactions in the US and Europe, and opportunistically in Asia and Latin America. The new fund continues Lexington’s more than 20-year-old co-investment program which has invested more than $7 billion in over 400 co-investments in partnership with more than 170 private equity sponsors.

CIP V received commitments from 13 large institutional investors based in the US, Europe, Latin America, and Australia, with an average commitment size each of $235 million. These institutions include Florida State Board of Administration, Minnesota State Board of Investment, and the Maryland State Retirement & Pension System.

“We are grateful for the continued support of CIP’s investors, which represent some of the largest institutional investors in private equity,” said Wil Warren, a partner and the president of Lexington. “Having initiated the co-investment program 23 years ago with the backing of a single US pension, CIP’s experienced team has leveraged its proven co-investment capabilities and deep relationships with private equity sponsors to expand the program, partnering with key institutional limited partners to create a robust deal-sourcing platform.”

CIP V is led by four partners – David Outcalt, Bart Osman, James Pitt, and John Loverro – and made its first investment in September 2020.

Lexington Partners is an alternative investment manager primarily involved in providing liquidity to owners of private equity and other alternative investments and in making co-investments alongside private equity sponsors. Since its founding in 1994, Lexington has acquired over 3,400 secondary and co-investment interests through 900 transactions with a total value in excess of $62 billion.

Lexington also invests in private investment funds during their initial formation and has committed to more than 500 new funds in the US, Europe, Latin America, and the Asia-Pacific region. The firm has offices in New York, Boston, Menlo Park, London, Hong Kong, Santiago, São Paulo and Luxembourg.

© 2021 Private Equity Professional | March 23, 2021

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