Lakestar, a Zurich-based venture capital firm known for early investments in Spotify and Revolut, has closed a US$265 million continuation fund, anchored by secondary market specialist Lexington Partners alongside Industry Ventures and Performance Equity Management.
According to Tech Funding News, the oversubscribed fund allows Lakestar to transfer stakes from four existing funds into the new vehicle, extending its exposure to portfolio companies while providing liquidity to limited partners seeking an exit.
Such structures are becoming increasingly common as IPO markets remain subdued and exit horizons lengthen.
Lakestar has not revealed which portfolio companies were included in the continuation fund, though sources suggest only partial stakes were transferred, enabling the original funds to retain upside potential.
Klaus Hommels, Lakestar’s founder and chairman, described the fund as among the largest continuation vehicles in the European venture capital sector.
Hommels, who invested early in Facebook and Skype, also serves as chair of the NATO Innovation Fund.
The development reflects broader industry trends.
US firms such as General Catalyst, Lightspeed, and NEA have launched similar continuation funds, while European player HV Capital closed a €430 million vehicle in 2022.
In parallel, Lakestar is raising a separate US$300 million fund aimed at European defence technology companies, tapping into heightened defence spending across the region.
Featured image credit: Edited by Fintech News Switzerland, based on image by freepik
