Lakestar, a prominent European venture capital firm, has successfully closed a € 228 million ($265 million) continuation fund, Lakestar Continuation Fund I (LCF I). The oversubscribed fund, which is one of the largest of its kind in the European venture capital market, will provide continued support to a selection of the firm’s most promising deep tech portfolio companies.
LCF I was backed by a consortium of leading institutional investors, with Lexington Partners as the lead investor. The group also included Industry Ventures and Performance Equity Management, among others. Their participation shows strong confidence in the portfolio’s performance and Lakestar’s investment platform.
The transaction was structured as a secondary liquidity process, offering existing limited partners (LPs) in four Lakestar funds the option to sell a portion of their holdings. This process provided a significant liquidity event for LPs while allowing Lakestar to retain upside potential in its most valuable assets. This strategic move ensures the firm can continue to support its portfolio companies as they scale and pursue new growth opportunities.
Klaus Hommels, Founder and Chairman at Lakestar, stated:
“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.”
PJT Partners served as the exclusive financial advisor to Lakestar, and Clifford Chance provided legal counsel for the transaction.
