NEW YORK, Jan. 9, 2024 /PRNewswire/ — Lexington Partners, a preeminent name in secondary acquisition funds, has announced the successful closing of its latest fund, Lexington Capital Partners X, L.P. (“LCP X”). Securing an impressive $22.7 billion in total capital commitments, LCP X has not only surpassed its initial $15 billion target but has also significantly outstripped Lexington’s previous secondary fund, LCP IX, which closed at $14 billion in 2020. This achievement underscores Lexington Partners’ continued leadership and expertise in the rapidly evolving secondary market.
LCP X is strategically designed to capitalize on the growing opportunities within the private equity and alternative asset sectors. The fund’s primary focus is acquiring partnership portfolios from large-scale investors seeking portfolio rebalancing or increased liquidity. Lexington Partners’ extensive network and deep industry insights also enable LCP X to pursue smaller, specialized opportunities and to collaborate directly with general partners in providing innovative secondary solutions for their investors. Already demonstrating strong momentum, LCP X, a 2022 vintage fund, is over 40% committed, boasting a diverse portfolio of more than 50 transactions involving a wide array of sellers, including public and corporate pensions, banks, and other major financial institutions.
Wil Warren, President of Lexington Partners, commented on this significant milestone, stating, “This landmark fundraise is a testament to the compelling opportunities present in the global secondary market and Lexington’s demonstrated proficiency in leveraging our scale, experience, extensive relationships, and global platform to generate substantial value for our investors. We deeply appreciate the confidence and support from both our long-standing and new investors worldwide. Their commitment empowers us to maintain our performance and continue to drive innovation in the secondary market.”
Lexington Partners’ analysis indicates that 2023 is poised to be the third consecutive year where secondary industry volume exceeds $100 billion, highlighting the sustained growth and importance of this market. As a specialist investment manager under Franklin Templeton, Lexington Partners anticipates continued robust expansion in the global secondary market. This growth is fueled by the significant capital allocated to private market funds and the increasing recognition among limited partners of the secondary market as a crucial tool for effective portfolio management. Furthermore, the ongoing trend of fund sponsors seeking liquidity solutions for their limited partners through structured secondary transactions is expected to further enrich secondary deal flow.
Pål Ristvedt, Partner at Lexington Partners, added perspective on the current market dynamics, “We believe we are currently witnessing the early stages of a generational buying opportunity within private markets, one that we expect to unfold over several years. In times marked by economic uncertainty and a slowdown in portfolio company exits, the secondary market serves as a vital release valve, providing essential liquidity to investors. Lexington Partners’ time-tested investment strategy, experienced team, and strong counterparty reputation position us ideally to deliver sophisticated and pioneering secondary solutions.”
LCP X has successfully attracted a diverse base of over 400 investors from across the globe, 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. This global investor base reflects the widespread recognition of Lexington Partners’ expertise and the attractiveness of the secondary market.
Lexington Partners L.P. operates as a wholly-owned subsidiary of Franklin Templeton. References to LCP X throughout this article encompass Lexington Capital Partners X, L.P. and its associated investment vehicles. Total capital commitments include certain commitments to associated vehicles that were undergoing legal processing as of December 31, 2023.
About Lexington Partners
Lexington Partners stands as a leading global manager specializing in secondary private equity and co-investment funds. With over three decades of pioneering experience, Lexington Partners has been instrumental in shaping the institutional secondary market and established one of the first independent, discretionary co-investment programs 25 years ago. Managing total capital exceeding $75 billion, Lexington Partners has executed over 1,000 transactions, acquiring more than 5,000 interests. Strategically positioned in key private equity and alternative asset investment hubs across North America, Europe, Asia, and Latin America, Lexington Partners leverages a global team to serve its investors. As the global secondary private equity and co-investments specialist investment manager of Franklin Templeton, Lexington Partners provides unparalleled market access and expertise. For further information, please visit www.lexingtonpartners.com.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton is dedicated to delivering superior investment outcomes through its expertise in investment management, wealth management, and technology solutions. With a global network of specialist investment managers, Franklin Templeton provides extensive capabilities across fixed income, equity, alternatives, and multi-asset solutions. Boasting over 1,300 investment professionals and a presence in major financial centers worldwide, the California-based firm brings over 75 years of investment experience and manages over $1.4 trillion in assets as of November 30, 2023. For more detailed information, please visit franklintempleton.com and connect with Franklin Templeton on LinkedIn, Twitter and Facebook.
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SOURCE Lexington Partners
