Lexington Partners

Last updated
Lexington Partners
Company type Subsidiary
Industry Private equity
Founded1994;30 years ago (1994)
Headquarters New York, New York, U.S.
Products Secondary Investments,
Equity co-investments,
Fund Investments
AUM $55 billion
Parent Franklin Templeton
Website www.lexingtonpartners.com

Lexington Partners is one of the largest manager of secondary acquisition and co-Investment funds in the world, founded in 1994. Lexington manages approximately $55 billion of which an unprecedented $14 billion was committed to the firm's ninth fund (Lexington Capital Partners IX, closed in January 2020), the largest dedicated secondaries pool of capital ever raised at the time. [1]

Contents

Lexington Partners is headquartered in New York with offices in Boston, Menlo Park, London, Hong Kong, Santiago, São Paulo and Luxembourg.

History

Lexington Partners was founded by Brent R. Nicklas. [2] Formerly a founding member of Landmark Partners, Nicklas helped pioneer the formation of the secondary market and was involved in some of the earliest secondary deals dating back to 1993. [3]

On November 1, 2021, Franklin Templeton announced they would acquire 100.0% of Lexington Partners in a $1.75 billion cash deal. [4] This acquisition was finalized on April 5, 2022. [5]

Investment program

Lexington invests much like a fund of funds, purchasing interests in various investment funds, typically structured as limited partnerships. Lexington Partners acquires positions in venture capital, leveraged buyout and mezzanine capital funds, together with portfolios of companies or stakes in companies from institutions, corporations, government bodies and family offices. [6]

Lexington is a dedicated secondaries investor [7] and like many of its peers has limited ability to make new commitments to private equity funds. While in certain instances this impacts the firm's desirability to general partners as a replacement limited partner, Lexington does make strategic commitments to newly formed private equity funds. The firm also manages equity co-investment vehicles [8] that invest alongside global private equity sponsors. Lexington's secondary funds have committed to over 500 newly formed private equity funds while Lexington's co-investment funds have committed to invest over $7.0 billion in over 400 co-investments in the U.S., Europe and Asia. [9] [10]

Lexington's limited partners include public and corporate pension funds, sovereign wealth funds, insurance companies, financial institutions, endowments, foundations, and family offices from over 40 countries.

Notable transactions

Since 1994, Lexington has stated that it has completed over 500 secondary market transactions. [11] [9] [12] Although most secondary transactions are private, the following are notable publicly disclosed transactions and firm milestones:

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References

  1. ↑ Le, Adam (2020-01-15). "Lexington collects $14bn for biggest-ever secondaries fund". Secondaries Investor. Retrieved 2020-03-05.
  2. ↑ AVCJ Interview , A Private Word With Brent Nicklas
  3. ↑ "Lexington Partners Promotes Wilson Warren to President Role". Wall Street Journal. 2018-06-21. Retrieved 2019-01-20.
  4. ↑ Nishant, Niket; Oguh, Chibuike (1 November 2021). "Franklin Templeton to buy Lexington Partners for $1.75 bln as part of secondaries push". Reuters .
  5. 1 2 "Franklin Templeton finalises takeover of Lexington Partners". 5 April 2022.
  6. ↑ "Lexington Partners LP". Bloomberg. March 5, 2020.
  7. ↑ "Private equity secondaries become a more liquid proposition". Private Equity Wire. 2016-11-01. Retrieved 2017-09-19.
  8. ↑ "Lexington raises $1.6bn for co-investments". Private Equity International. 2013-07-17.
  9. 1 2 "Our Team". Lexington Partners. Retrieved 2019-10-24.
  10. 1 2 Burroughs, Tim (2017-10-04). "Lexington leads $1.2b Warburg Pincus Asia secondary deal". AVCJ. Retrieved 2019-10-24.
  11. ↑ Ballard, Ed; Kreutzer, Laura (2017-07-06). "Lexington to Back Up to €1.8 Billion Stapled Secondary Deal With BC Partners". Wall Street Journal. Retrieved 2017-09-28.
  12. ↑ Didymus, Mike (4 October 2017). "Warburg said to eye $1.2bn Asia secondaries selloff to Lexington, others | AltAssets Private Equity News" . Retrieved 2019-10-24.
  13. ↑ Farman, Madeleine (1 December 2022). "Lexington nears $15bn target in crowded fundraising market" . Retrieved 27 November 2023.
  14. ↑ Secondaries Investor, January 15, 2020 , AltAssets, January 15, 2020 , Wall Street Journal, January 15, 2020 , Pensions & Investments, January 15, 2020 , Pitchbook, January 16, 2020 AVCJ, January 15, 2020
  15. ↑ Kreutzer, Laura (2017-08-14). "Lexington Seals $1 Billion Secondary Deal With BC Partners". Wall Street Journal. Retrieved 2017-10-10.
  16. ↑ Louch, William; Lim, Dawn (2018-02-22). "Lexington Eyes Record-Breaking $12 Billion Fund to Buy Private-Equity Stakes". Wall Street Journal. Retrieved 2018-03-04.
  17. ↑ "ProSiebenSat.1 sells venture capital portfolio to Lexington: Reuters – PE Hub". PE Hub. 2017-06-28. Retrieved 2017-10-10.
  18. ↑ Hammond, Jack (25 February 2016). "Lexington expands LatAm presence with Chile office | AltAssets Private Equity News". altassets.net. Retrieved 2017-10-10.
  19. ↑ Le, Adam (2015-11-05). "Lexington, Lothian buy Macquarie infra stakes from BAE". Secondaries Investor. Retrieved 2017-10-10.
  20. ↑ "Lexington Closes LCP VIII on $10.1B | PitchBook". pitchbook.com. Retrieved 2020-03-05.
  21. ↑ AVCJ, April 22, 2015 , AltAssets, April 22, 2015 , PE HUB, April 21, 2015 , Real Deals, April 22, 2015 , Law 360, April 21, 2015
  22. ↑ "JPMorgan's One Equity finds path to independence – PE Hub". PE Hub. 2014-08-12. Retrieved 2017-10-10.
  23. ↑ "Lexington Partners closes CIP III fund". Venture Capital Post. 2013-07-17. Retrieved 2017-10-10.
  24. ↑ Kozlowski, Rob (2013-07-17). "Lexington Partners closes third co-investment fund at nearly $1.6 billion". Pensions & Investments. Retrieved 2017-10-10.
  25. ↑ "Lexington Partners raises $7bn for largest ever secondaries fund | AltAssets Private Equity News". 30 November 2001. Retrieved 2020-12-06.
  26. ↑ PE HUB July 10, 2010
  27. ↑ Serv, Cust (2008-02-18). "For CalPERS, Out With Old, In With New". Buyouts. Retrieved 2020-03-05.
  28. ↑ "American Capital raises $1bn fund | AltAssets Private Equity News". altassets.net. 30 November 2001. Retrieved 2017-10-10.
  29. ↑ AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL (AltAssets.net)
  30. ↑ Meikle, Brad (2005-08-22). "Lexington Aims at Middle Market". Buyouts. Retrieved 2020-03-05.
  31. ↑ US secondaries specialist Lexington Partners closes fund on $2bn(AltAssets.net)
  32. ↑ Meikle, Brad (2000-12-18). "Chase Unloads $1 Billion LP Portfolio". Buyouts. Retrieved 2021-12-24.
  33. ↑ The Royal Bank of Scotland: asset sale
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