Lexington Partners announced Wednesday the final closing of Lexington Middle Market Investors IV at $2.66 billion, surpassing its $2 billion target and hitting its hard cap.
The fund will "acquire growth capital, small- and middle-market buyout interests in the global secondary market," said a news release from the alternative investment firm. "In addition to portfolio and single-interest acquisitions, (the fund) will target general partner-led transactions such as spinouts, restructurings, tender offers and strip sales," the release added.
Predecessor fund Lexington Middle Market Investors III closed at $1.1 billion in 2014.
Investors in Lexington Middle Market Investors IV include the Florida State Board of Administration, Tallahassee, which oversees a total of $195.4 billion including the $156.1 billion Florida Retirement System; the Minnesota State Board of Investment, St. Paul, which oversees $85.3 billion, including $62.4 billion in retirement assets; and the $1.5 billion Tallahassee (Fla.) Pension Plan.
Some 22% of the fund's capital has already been committed to middle-market interests in the U.S. and Europe, according to the release. A spokesman declined to comment beyond the release.