Lakestar Raises Continuation Fund to Extend Venture Bets

European venture capital firm Lakestar has raised a $265 million continuation vehicle, allowing the group known for backing Spotify and Revolut to hold onto some portfolio companies longer while bringing in new investors.

The new vehicle is backed by lead investor Lexington Partners as well as Industry Ventures, Performance Equity Management and other secondary investors, it said in a statement. The fund, which was oversubscribed, allows Lakestar to provide liquidity to backers of four existing funds.