According to TFN on August 28, Lakestar successfully raised a follow-on fund worth $265 million, allowing for the rolling of capital from four existing funds and providing liquidity for investors who want to withdraw.
The fund is recorded as oversubscribed, with Lexington Partners, Industry Ventures, and Performance Equity Management serving as anchor investors, helping Lakestar retain stakes in portfolio companies while also providing liquidity for limited partners.
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Lakestar closed a follow-on fund worth $265 million, according to TFN.
The fund is oversubscribed, with anchor investors such as Lexington Partners, Industry Ventures, and Performance Equity Management.
The rolling mechanism from four funds helps extend portfolio holdings and create liquidity for LPs.
What is the scale and significance of Lakestar's follow-on fund?
According to TFN, Lakestar's follow-on fund has a size of $265 million and is recognized as one of the largest follow-on funds in the European venture capital market.
The $265 million size allows Lakestar to continue investing in existing portfolio companies while leveraging opportunities to raise capital when businesses need the next round. The oversubscribed fund indicates market demand for quality assets and investor confidence in the strategy to continue supporting selected investments.
This fund is one of the largest follow-on funds in the European venture capital space.
– Klaus Hommels, founder and chairman of Lakestar, August 28, TFN
Who are the anchor investors and what is their role in the fundraising process?
Lexington Partners, Industry Ventures, and Performance Equity Management are the main anchor investors, playing a key role in the fund's oversubscription.
Anchor investors typically commit a large amount of capital early, instilling confidence in other investors and helping the fund meet its closing conditions. The presence of specialists in secondary and venture investments, such as Lexington Partners and Industry Ventures, also reflects the hybrid mechanism between primary and secondary investments in this fund structure.
How does the process of rolling capital from four existing funds work and what are the benefits for limited partners?
Rolling equity allows Lakestar to transfer shares from four existing funds to a new follow-on fund, helping to maintain ownership stakes in potential companies.
For limited partners, this mechanism opens up the opportunity to continue participating in profits from growth companies while providing liquidity for those LPs who want to exit. In terms of the portfolio, it supports the stability of strategic shareholders and reduces pressure to sell shares in the secondary market.
What is the impact of this fund on the European venture capital market?
The $265 million follow-on fund enhances the ability to provide subsequent financing for European companies, strengthening the support network for growth rounds.
The successful raising of a large fund in a volatile market signals that demand for quality assets remains strong. This could encourage other funds to undertake follow-ons to protect and enhance the value of strategic investments.
Frequently Asked Questions
What is a follow-on fund?
A follow-on fund is a fund that specializes in investing in companies already in the portfolio from previous funds, aiming to support the next funding round or strengthen current holdings.
How is the $265 million recorded according to the source?
According to TFN, the $265 million figure is the size of the fund that Lakestar has closed, information released on August 28.
What does rolling capital from four funds mean for investors who want to withdraw?
Rolling capital allows some investors to receive liquidity through a share transfer structure, while other investors can continue to hold in the new fund.
What is the role of the anchor investor?
Anchor investors commit capital early, reducing fundraising risk, creating a ripple effect to attract additional investors and helping the fund reach its closing target.
Source: https://tintucbitcoin.com/lakestar-chot-quy-follow-on-265-trieu-usd/
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