Private equity fundraising got off to a blistering start in January with the 10 largest funds raising $41.9 billion between them.
Lexington Partners’ $14 billion haul for its ninth secondaries vehicle was the biggest fund raised in the month and the largest ever pool of capital for the strategy. The secondaries giant raised $2 billion more than in its initial target for LCP IX, which is about 40 percent larger than its predecessor.
Capital raised from the fund will invest across private equity and other alternative asset strategies including direct investments, co-investments and hedge fund private equity strategies. Cathay Life Insurance committed $150 million to the vehicle, Anne Arundel County Retirement & Pension System committed $25 million and Baltimore City Fire and Police Employees’ Retirement System invested $15 million, according to Private Equity International data.
Pan-Asian buyout firm Baring Private Equity Asia closed on its $6.5 billion hard-cap for its seventh flagship vehicle, exceeding its $5.5 billion target. Canada Pension Plan Investment Board, Arizona Public Safety Personnel Retirement System and the UK’s Border to Coast pension pool backed the fund. The vehicle, which is more than 60 percent larger than its predecessor, will invest in healthcare, education, business services, financial services, consumer goods, manufacturing, and telecommunications, media and technology companies across Asia.
Three energy-focused vehicles are part of January’s largest funds list. Energy Capital Partners raised a total of $6.8 billion for its fourth flagship fund and for its separate co-investment vehicle. Fund IV will continue ECP’s strategy of investing in infrastructure within the core sectors of natural gas power generation, renewables and storage solutions, midstream, and environmental infrastructure. Boston-based ArcLight Capital Partners gathered $3.4 billion for its seventh flagship fund, a 40 percent decrease on its $5.6 billion, 2014-vintage predecessor. The fund will invest in midstream infrastructure opportunities and power investments.