Lakestar Raises $265 M Continuation Vehicle to Extend Portfolio

Lakestar Closes $265M Continuation Vehicle to Unlock Liquidity and Retain Upside

Europe’s Lakestar, a venture capital heavyweight behind early-stage giants like Spotify and Revolut, has successfully closed a US$265 million continuation vehicle—one of the largest of its kind in European VC.

This Lakestar Continuation Fund I (LCF I) was oversubscribed and led by institutional investors such as Lexington Partners, Industry Ventures, and Performance Equity Management, underscoring investor confidence in Lakestar’s portfolio and long-term strategy.

Through a secondary liquidity process, Lakestar offered existing LPs in four earlier funds the option to sell part of their stakes—striking a balance between providing liquidity and preserving future upside. The transaction enables continued backing for portfolio companies as they pursue growth.

Klaus Hommels, Founder and Chairman, emphasized that the fund’s success reflects the strength of both Lakestar’s portfolio and the broader innovation ecosystem in Europe.

This move mirrors a growing trend within venture capital: continuation vehicles. As exit horizons lengthen and IPO markets remain subdued, more funds are turning to these structures to return capital while staying invested in their strongest companies.

For LPs, the result is flexibility. For Lakestar, it ensures ongoing support for Europe’s most ambitious founders.