Insights|
Lakestar closes a USD 265 Million Continuation Vehicle
Lakestar, one of Europe’s leading venture capital funds, has successfully closed a USD 265 million (EUR 228 million) continuation vehicle, Lakestar Continuation Fund I (“LCF I” or “The Fund”). The Fund, which was oversubscribed, represents one of the largest transactions of its kind in the European venture capital market to date.
LCF I was backed by a set of institutional investors including Lexington Partners as lead investor, alongside Industry Ventures, Performance Equity Management and a group of other leading secondary investors, demonstrating strong confidence in the underlying portfolio and Lakestar’s broader platform.
The transaction was structured through a secondary liquidity process whereby existing limited partners (LPs) in four Lakestar funds were offered liquidity at a price determined by an arm’s length competitive process. For most of the portfolio companies, only a portion of Lakestar’s overall holding was sold to LCF I to retain upside potential for the selling funds whilst still providing a strong liquidity event for Lakestar’s LPs. The transaction enables Lakestar to continue supporting and financing portfolio companies so that they can pursue further growth opportunities.
Klaus Hommels, Founder and Chairman, at Lakestar said: “The ability to close one of Europe’s largest venture continuation vehicles of this kind to date shows the strength of our portfolio and the enduring belief in European innovation. We are pleased to deliver liquidity to our existing LPs while the backing of a selection of top-tier investors highlights confidence not only in the underlying portfolio but also in Lakestar’s broader investment strategy. We are also proud of Lakestar’s role as a long-term partner to Europe’s next generation of category-defining companies.”
Lakestar was exclusively advised by PJT Partners, one of the world’s leading financial advisory firms. Clifford Chance acted as legal advisors for the transaction.
