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Lightyear Capital closes Fund IV above target

  • Related co-investment vehicle brings total to $1.03 bln
  • Includes $28.2 mln GP commitment
  • Firm invests in U.S. mid-market financial services

Lightyear Capital has raised more than $957 million for its fourth flagship fund, an SEC filing shows.

According to the Wall Street Journal, that figure represents a final close, reached several weeks ago, on Lightyear Fund IV, which was originally targeting $950 million.

A person with knowledge of the process confirmed that Lightyear made a GP commitment of $28.5 million, and that a related co-investment vehicle brings the total to $1.03 billion. The firm declined to comment.

Buyouts previously reported that the firm set a hard cap of $1.25 billion for Fund IV, which, like its predecessors, will invest in U.S. middle-market companies in the financial-services sector. Lightyear raised $954 million for its third fund in 2012.

The firm has already used Fund IV to invest in Austin-based eCommission Financial Services, which facilitates advances on real estate commissions.

Based in New York, Lightyear was founded in 2000 by Donald Marron, former chairman and CEO of PaineWebber, who leads the firm along with Mark Vassallo.

Action Item: Check out Lightyear Fund IV’s Form D filing here.

Donald Marron, chairman and founder, Lightyear Capital. Photo © Matt Greenslade