Lexington Partners – a leading manager of secondary acquisition funds – has announced the completion of fundraising for Lexington Capital Partners X, L.P. (LCP X) with $22.7 billion of total capital commitments. The fund has surpassed its $15 billion fundraising target and significantly exceeded the firm’s prior secondary fund, LCP IX, which closed on $14 billion in 2020.
LCP X’s strategy is focused on acquiring private equity and alternative asset partnership portfolios from large-scale investors as they rebalance their allocations or seek liquidity while also engaging in smaller opportunities utilizing Lexington’s deep industry relationships. And LCP X allows Lexington to work directly with general partners to offer secondary solutions for their investors. LCP X is a 2022 vintage fund over 40% committed, with a diversified portfolio of more than 50 transactions with various sellers, including public and corporate pensions, banks, and other financial institutions.
According to Lexington’s estimates, 2023 will be the third consecutive year in which secondary industry volume will pass $100 billion. And Lexington – which is a specialist investment manager of Franklin Templeton – expects that the global secondary market will continue to experience significant growth in the years ahead due to the substantial amount of capital committed to private market funds and limited partners increasingly embracing the secondary market as an effective portfolio management tool. And the trend of fund sponsors seeking liquidity solutions for their limited partners through organized transactions is expected to continue contributing to significant secondary deal flow.
LCP X attracted more than 400 investors, including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and wealth channel distribution partners in North America, Europe, Asia-Pacific, Latin America, and the Middle East.
KEY QUOTES:
“This milestone fundraise reflects the tremendous opportunity in the global secondary market and Lexington’s proven ability to leverage our scale, experience, relationships, and worldwide platform to unlock value for our investors. We are incredibly grateful for the trust and support from existing and new investors around the globe who have provided us with the capital to continue to perform and innovate in the secondary market.”
— Wil Warren, President of Lexington
“We believe we’re in the early stages of a generational secondary buying opportunity in private markets that will take multiple years to play out. During times of economic uncertainty and slowing portfolio company exits, the secondary market can be an important release valve to provide liquidity to investors. Lexington’s cycle-tested investment strategy, tenured team, and counterparty reputation enable us to provide sophisticated and innovative secondary solutions.”
— Pål Ristvedt, Partner of Lexington
