Lexington targets $750m for mid-market

The firm is expected to hold a first close on its third mid-market secondaries fund by the end of the year.

Lexington Partners is targeting $750 million for its latest mid-market secondaries fund, according to a US Securities and Exchange Commission document filed Tuesday. 

The filing does not represent a first close, according to a source with knowledge of the fund, but the firm is expected to hold one before the end of the year.  

Lexington Partners declined to comment on this story. 

As with its previous mid-market funds, Lexington Middle Market Investors III will target secondary investments in mid-market buyout funds, the source said. 

Tuesday’s SEC filing lists managing partner Brent Nicklas, chief financial officer Thomas Giannetti and partners Duncan Chapman, Marshall Parke, Lee Tesconi and Wilson Warren as executive officers on Fund III. 

The firm has not engaged an associated broker or dealer on the fund. 

Last year, the firm closed Lexington Capital Partners VII at $7 billion. Lexington was able to generate commitments from more than 200 institutional investors for the close, according to a announcement released by the firm at the time of the close. 

That announcement also mentioned the firm’s 2009 $650 million predecessor to Fund III – Lexington Middle Market Investors II – which targets “young” private equity interests that are less than 50 percent invested. 

Lexington’s first mid-market vehicle, which closed on $550 million in 2009, was generating a 10.7 percent net internal rate of return and 1.35x investment multiple as of 30 June, according to California Public Employees’ Retirement System documents.  

Lexington Partners has raised $20 billion across 15 secondary funds and seven co-investment pools since 1990, according to its website. The firm has offices in New York, Boston, Silicon Valley, London and Hong Kong.