Lexington Partners LP has started talking to investors regarding its plan to raise $12 billion to fuel a fund that will purchase secondhand private equity fund stakes, The Wall Street Journal reported, citing "people familiar with the matter."

If Lexington Partners secures the target amount for Lexington Capital Partners IX, it would beat the record $10.8 billion that French rival Ardian raised in 2016 for secondary deals. Lexington Partners accumulated $10.1 billion for its previous flagship fund in 2015, according to the report.

Lexington Partners' plan reflects secondary investors' growing interest in buying fund positions of pensions and endowments that need to offload their illiquid holdings, the news outlet reported.