Lakestar holds first closes totalling €375m

Oscar Geen
05 December 2018

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Zurich-based VC firm Lakestar has held first closes totalling тЌ375m on its double fundraise, Unquote understands.

Lakestar III has held a close on €125m against a target of €250m for early-stage investments, while Lakestar Growth I has held a close on €250m against a target of €550m to be invested in larger rounds.

The VC firm already has a track record of doing both early- and later-stage investments, but has previously combined them into one vehicle.

It launched the latest fundraise in Q2 this year and registered both vehicles in Guernsey.

Lakestar II held a final close on €350m in August 2015, which was a marked increase on the €135m raised by Lakestar I in 2013. Lakestar I is expected to generate an overall money multiple of 3.5x.

Monument Group is acting as placement agent for the latest fundraise, King & Wood Mallesons (KWM) is providing legal advice.

Lakestar and Monument declined to comment on the fundraise, and KWM did not return a request for comment.

For more information about Lakestar's history and strategy, see the firm's GP profile based on an interview with Klaus Hommels in July.

Investors
Lakestar's investor base was mostly European for Fund I, but attracted some US-based and Asian investors for Fund II, and is expected to do the same for the latest fundraise.

Investments
The new funds will give Lakestar the flexibility to invest from very early stages up to much larger later-stage rounds. Lakestar II invested between €500,000-50m per ticket, whereas the new Growth vehicle may invest up to €100m and co-invest in much larger rounds.

The fund will additionally back companies headquartered outside Europe that have the potential to expand their European presence. It also has the capability to invest in the pre-sale stage of ICOs, which was forbidden under the terms of Fund II.

People
Lakestar – Klaus Hommels (founder).