Lakestar, one of Europe’s leading venture capital firms, has successfully closed a USD 265 million (EUR 228 million) continuation vehicle, Lakestar Continuation Fund I (LCF I), marking one of the largest transactions of its kind in the European VC market to date.
The fund, which was oversubscribed, attracted backing from a syndicate of institutional investors led by Lexington Partners, with Industry Ventures, Performance Equity Management, and several other secondary investors also participating. The strong investor turnout highlights confidence in Lakestar’s portfolio and its long-term strategy of nurturing Europe’s next wave of global technology leaders.
The transaction was structured through a secondary liquidity process, giving existing limited partners (LPs) in four Lakestar funds the option to sell their stakes. The pricing was determined through an arm’s length competitive process. In most cases, Lakestar retained a portion of its holdings in portfolio companies, enabling continued exposure to future growth while providing liquidity to investors.
Klaus Hommels, Founder and Chairman of Lakestar, said the milestone reflects both the quality of the firm’s investments and the resilience of European innovation:
“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.”
Advisory support on the deal was provided by PJT Partners, with Clifford Chance serving as legal counsel.
The continuation vehicle positions Lakestar to continue financing high-potential startups while offering existing investors a significant liquidity event — a rare balance in today’s competitive venture landscape.
