Lakestar, a Zurich-based enterprise capital agency recognized for early investments in Spotify and Revolut, has closed a US$265 million continuation fund, anchored by secondary market specialist Lexington Companions alongside Trade Ventures and Efficiency Fairness Administration.
In line with Tech Funding Information, the oversubscribed fund permits Lakestar to switch stakes from 4 present funds into the brand new automobile, extending its publicity to portfolio corporations whereas offering liquidity to restricted companions searching for an exit.
Such constructions have gotten more and more widespread as IPO markets stay subdued and exit horizons lengthen.
Lakestar has not revealed which portfolio corporations had been included within the continuation fund, although sources counsel solely partial stakes had been transferred, enabling the unique funds to retain upside potential.
Klaus Hommels, Lakestar’s founder and chairman, described the fund as among the many largest continuation autos within the European enterprise capital sector.
Hommels, who invested early in Fb and Skype, additionally serves as chair of the NATO Innovation Fund.
The event displays broader trade traits.
US corporations equivalent to Basic Catalyst, Lightspeed, and NEA have launched related continuation funds, whereas European participant HV Capital closed a €430 million automobile in 2022.
In parallel, Lakestar is elevating a separate US$300 million fund aimed toward European defence know-how corporations, tapping into heightened defence spending throughout the area.
Â
Featured picture credit score: Edited by Fintech Information Switzerland, based mostly on picture by freepik