Lexington Partners

Lexington Partners is one of the world’s largest and most experienced secondary market investors in private equity, with approximately $70 billion in committed capital. Founded in 1994 and headquartered in New York, Lexington has completed over 600 secondary transactions involving more than 4,000 fund interests worldwide.

Investment Strategy

Lexington Partners focuses exclusively on the secondary market for private equity, venture capital, and other alternative investment fund interests. The firm acquires portfolios of existing limited partner positions from investors seeking liquidity, portfolio rebalancing, or regulatory relief. Lexington also participates in GP-led continuation vehicles, preferred equity transactions, and other structured secondary solutions.

The firm’s investment approach emphasizes rigorous underwriting of underlying fund portfolios, including detailed analysis of portfolio companies, GP track records, and remaining value creation potential. Lexington’s deep experience in secondary pricing and structuring allows the firm to evaluate complex, multi-asset portfolios efficiently and to provide bespoke liquidity solutions tailored to seller requirements.

Lexington’s co-investment program deploys capital alongside the fund managers whose portfolios the firm has evaluated or acquired through secondary transactions, providing additional concentrated exposure to high-conviction opportunities.

Private Markets Approach

Lexington’s secondary market focus provides investors with several structural advantages compared to primary fund investing, including accelerated capital deployment, enhanced portfolio diversification, reduced blind pool risk, and the potential for discounted entry points. The firm constructs portfolios that span multiple vintage years, geographies, strategies, and general partners through each secondary fund.

Lexington has been an active participant in the growth of the GP-led secondary market, evaluating and investing in continuation funds, strip sales, and tender offers initiated by general partners seeking to extend their ownership of high-performing assets.

The firm was acquired by Franklin Templeton in 2022 but continues to operate as an independent investment platform. Lexington’s team of over 100 professionals operates from offices in New York, Boston, London, Hong Kong, Santiago, and other global locations, providing broad geographic coverage for secondary deal sourcing and execution.