MetLife Investment Management closes $1.2bn private equity fund

Written by Michael Griffiths

08/07/2024

MetLife Investment Management (MIM) has launched its second private equity fund for institutional clients alongside the closing of approximately $1.2bn in commitments to a new MIM-managed fund-of-funds.

The new fund, MetLife Investment Private Equity Partners II, purchased a portfolio of approximately $860m of private equity and equity co-investment interests with funded and unfunded commitments totalling $975m from MetLife affiliates.

This was part of a managed secondary sale transaction anchored by funds managed by Lexington Partners L.P., which served as lead investor.

“MIM continues to expand its client solutions with this new fund, which leverages our deep private equity investment capabilities and further demonstrates our leadership in investing in private markets,” said MetLife chief financial officer and head of MIM, John McCallion.

“The strong long-term performance of our private equity investments drove the creation of this differentiated investment solution.”

MIM, the institutional asset management business of MetLife, syndicated a portion of the transaction to other unaffiliated institutional clients. MIM intends to deploy approximately $250m on behalf of the fund on new private equity opportunities.

The portfolio of assets acquired by the fund consists of nearly 50 private equity and equity co-investments diversified globally. The sale follows strong returns for the MetLife general account’s private equity portfolio, which held $14.3bn in private equity assets as of 31 March.

Partner and president of Lexington Partners, Wil Warren, added: “We are thrilled to partner with MIM on this innovative transaction.

“MIM Private Equity Partners II represents a high-quality, diversified portfolio which we believe stands out in today’s secondary market, and we look forward to working with MIM on this investment going forward.”

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