NEW YORK, Jan. 9, 2024 /PRNewswire/ — Lexington Partners, a preeminent name in secondary private equity, has announced the successful closing of its latest fund, Lexington Capital Partners X, L.P. (LCP X), amassing a staggering $22.7 billion in capital commitments. This landmark achievement significantly surpasses the initial $15 billion target and outstrips its predecessor, LCP IX, which closed at $14 billion in 2020, underscoring strong investor confidence in Lexington Partners Lp and its strategic vision.
LCP X is strategically designed to capitalize on the burgeoning secondary market by acquiring private equity and alternative asset portfolios from large institutional investors seeking portfolio adjustments or liquidity. Beyond large-scale transactions, the fund will also pursue targeted opportunities leveraging Lexington’s extensive network and industry acumen. A key aspect of LCP X’s strategy includes direct collaboration with general partners to deliver innovative secondary solutions for their limited partners, showcasing Lexington Partners LP‘s commitment to comprehensive market engagement. Already over 40% committed, this 2022 vintage fund boasts a diverse portfolio encompassing more than 50 transactions with a wide array of sellers, including public and corporate pensions, banks, and other financial institutions.
Wil Warren, President of Lexington, commented on this significant milestone, stating, “This milestone fundraise is a testament to the compelling opportunities within the global secondary market and Lexington Partners LP‘s proven ability to harness our scale, deep-rooted experience, strong industry relationships, and global platform to generate substantial value for our investors. We are immensely grateful for the unwavering trust and support from both our long-standing and new investors worldwide. Their commitment empowers us to continue to excel and innovate within the dynamic secondary market.”
Lexington’s market analysis indicates that 2023 will mark the third consecutive year where secondary industry volume exceeds $100 billion. As a specialist investment manager under Franklin Templeton, Lexington Partners LP anticipates sustained growth in the global secondary market. This projection is fueled by the substantial capital allocated to private market funds and the increasing adoption of secondary transactions by limited partners as a strategic portfolio management tool. Furthermore, the ongoing trend of fund sponsors seeking liquidity solutions for their limited partners through structured secondary transactions is expected to continue driving significant deal flow.
Pål Ristvedt, Partner at Lexington, further elaborated on the market dynamics: “We believe we are currently in the early stages of a compelling, multi-year secondary buying opportunity within private markets. In periods characterized by economic uncertainty and slower exit activity from portfolio companies, the secondary market serves as a crucial release valve, providing essential liquidity to investors. Lexington Partners LP’s time-tested investment strategy, seasoned team, and strong counterparty reputation position us ideally to deliver sophisticated and forward-thinking secondary solutions.”
LCP X has attracted a diverse investor base exceeding 400 participants, including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and wealth channel distribution partners spanning North America, Europe, Asia-Pacific, Latin America, and the Middle East, highlighting the global appeal and trust in Lexington Partners LP.
Lexington Partners L.P. operates as a wholly-owned subsidiary of Franklin Templeton. References to LCP X encompass Lexington Capital Partners X, L.P. and associated vehicles. Total capital commitments include specific commitments to associated vehicles undergoing legal processing as of December 31, 2023.
About Lexington Partners
Lexington Partners stands as one of the world’s foremost and most successful managers specializing in secondary private equity and co-investment funds. With a pioneering history in the institutional secondary market dating back over 30 years, Lexington Partners LP also established one of the first independent, discretionary co-investment programs 25 years ago. The firm manages total capital exceeding $75 billion, having executed over 1,000 transactions and acquired more than 5,000 interests. Lexington Partners LP maintains a global presence with strategically located teams in key private equity and alternative asset investment hubs across North America, Europe, Asia, and Latin America. As the global secondary private equity and co-investments specialist investment manager of Franklin Templeton, further details can be accessed at www.lexingtonpartners.com.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating under the Franklin Templeton brand, serving clients in over 150 countries. Franklin Templeton’s mission is centered on delivering superior investment outcomes, wealth management, and technology solutions. Through its specialist investment managers, the company offers global specialization, bringing extensive expertise across fixed income, equity, alternatives, and multi-asset solutions. With a global team of over 1,300 investment professionals and offices in major financial centers worldwide, the California-based firm boasts over 75 years of investment experience and manages over $1.4 trillion in assets under management as of November 30, 2023. For more information, please visit franklintempleton.com and connect on LinkedIn, Twitter and Facebook.
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SOURCE Lexington Partners
