Lexington to commit up to €600m to new BC fund in stapled deal

BC Partners is the majority owner of Acuris, the parent company of unquote", and declined to comment.

According to a source close to the situation, Lexington Partners has agreed to buy €1.2bn in existing LP commitments in BC European Capital IX (BC IX) while also committing up to €600m to BC European Capital X (BC X), which is currently being raised with a €7bn target and was launched in early 2016. The primary portion of the stapled deal will be dependent on the success of the secondaries component, as Lexington will commit 50 cents of primary capital to BC X for each €1 of BC IX commitments it secures.

The offer went out to BC IX investors last week, unquote" understands. It would allow them to lock in a 19% return and 1.6x multiple on their original commitments, according to two sources familiar with the situation.

According to the two sources, BC X had raised €6bn prior to the potential Lexington transaction, which is being intermediated by Campbell Lutyens. The deal follows a competitive tender process, which saw significant interest, according to one of the sources.

BC IX closed on its €6.5bn hard-cap in February 2012. LPs in the vehicle include California State Teachers Retirement System, Canada Pension Plan Investment Board, Iowa Public Employees Retirement System and Korea Investment Corporation, among a host of international institutional investors. Click here for a complete profile of BC IX

Look out for a wider analysis of stapled secondaries, available on Tuesday 10 July on unquote.com.

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