Cost of capital front of mind as Lexington closes industry’s biggest fund

The firm's $22.7bn haul this week comes at a time when institutional investors are assessing the opportunity cost of their investments.

By Adam Le

This time last year we were marvelling at the final close of Blackstone Strategic Partners' record $22.2 billion haul for what was then the largest secondaries fund of all time.

Just one year on and we find ourselves mouths agape again at Lexington Partners ' latest fundraise, which has set a new record for the biggest secondaries vehicle. At $22.7 billion, Lexington Capital Partners X is also the ninth largest private equity fund of all time, eclipsed only by buyout mega-funds from the likes of CVC Capital Partners, Clayton Dubilier & Rice, Advent International, Blackstone and a few others.

It’s worth noting that we’re measuring standalone secondaries vehicles here. As a programme, Blackstone’s secondaries unit has almost $25 billion’s worth of firepower, if you include the $2.7 billion concurrently raised for its dedicated GP-led fund. And don’t forget that...

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