Lexington Partners

Last updated
Lexington Partners
Type Subsidiary
Industry Private equity
Founded1994;29 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:

Related Research Articles

In the field of finance, private equity (PE) is stock in a private company that does not offer stock to the general public. Private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms rather than the companies that they invest in.

<span class="mw-page-title-main">Providence Equity</span> American global private equity investment firm

Providence Equity Partners L.L.C. is a specialist private equity investment firm focused on media, communications, education, and technology investments across North America and Europe. The firm specializes in growth-oriented private equity investments and has invested in more than 170 companies globally since its inception in 1989.

<span class="mw-page-title-main">CVC Capital Partners</span> British private equity and investment advisory firm

CVC Capital Partners is a Luxembourg-based private equity and investment advisory firm with approximately US$155 billion of assets under management and approximately €157 billion in secured commitments since inception across American, European and Asian private equity, secondaries and credit funds. As of 31 December 2021, the funds managed or advised by CVC are invested in more than 100 companies worldwide, employing over 450,000 people in numerous countries. CVC was founded in 1981 and, as of 31 March 2022, has over 650 employees working across its network of 25 offices throughout EMEA, Asia and the Americas.

<span class="mw-page-title-main">Goldman Sachs Capital Partners</span> Private equity firm

Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally. The group, which is based in New York City, was founded in 1986.

In finance, the private-equity secondary market refers to the buying and selling of pre-existing investor commitments to private-equity and other alternative investment funds. Given the absence of established trading markets for these interests, the transfer of interests in private-equity funds as well as hedge funds can be more complex and labor-intensive.

<span class="mw-page-title-main">Alternative investment</span> Investments other than stocks, bonds and cash

An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding capital stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, collectibles and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies, non-fungible tokens, and Tax Receivable Agreements. Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments.

<span class="mw-page-title-main">Apollo Global Management</span> American private equity company

Apollo Global Management, Inc. is an American private equity firm. It provides investment management and invests in credit, private equity, and real assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth funds, as well as other institutional and individual investors.

Landmark Partners, an SEC Registered Advisor, is an experienced participant in the private equity secondary market for private equity and real estate investments. Founded in 1989, the firm is a source of liquidity to owners of interests in venture, mezzanine, buyout, and real estate limited partnerships. Landmark Partners has four offices located in Boston, New York, Simsbury, and London.

Coller Capital is one of the largest global investors in the private equity secondary market ("secondaries"). It was founded in 1990 by the UK-based investor and philanthropist Jeremy Coller.

AlpInvest Partners is a global private equity asset manager with over $85 billion of committed capital since inception as of December 31, 2022. The firm invests on behalf of more than 450 institutional investors from North America, Asia, Europe, South America and Africa.

<span class="mw-page-title-main">Hellman & Friedman</span> American private equity firm

Hellman & Friedman LLC (H&F) is an American private equity firm, founded in 1984 by Warren Hellman and Tully Friedman, that makes investments primarily through leveraged buyouts as well as growth capital investments. H&F has focused its efforts on several core target industries including media, financial services, professional services and information services. The firm tends to avoid asset intensive or other industrial businesses. H&F is based in San Francisco, with offices in New York and London.

SVG Capital was a leading British private equity and investment management business. Headquartered in London, it was listed on the London Stock Exchange.

<span class="mw-page-title-main">H.I.G. Capital</span> US private equity and alternative assets investment firm


H.I.G. Capital is a global private equity and alternative assets investment company, headquartered in Miami, Florida. With over $59 billion of equity capital under management, the firm has a range of funds, including private equity, growth equity, credit/special situation, primary lending, and syndicated credit funds, as well as real estate funds. H.I.G. Capital provides both debt and equity investments for small and medium-sized businesses.

MidOcean Partners is a New York–based alternative asset management firm that specializes in mid-sized private equity and alternative leveraged investments.

<span class="mw-page-title-main">HarbourVest Partners</span> American private equity fund of funds

HarbourVest Partners is a private equity fund of funds and one of the largest private equity investment managers globally. The firm invests in all types of private equity funds, including venture capital and leveraged buyout funds, and also directly in operating companies.

<span class="mw-page-title-main">Paul Capital</span>

Paul Capital is a private equity investment firm made up of a fund of funds, secondary investments and a healthcare direct investment business. The firm has more than 100 employees and manages more than $7 billion across its three distinct investment platforms.

<span class="mw-page-title-main">GCM Grosvenor</span> American alternative asset management firm

GCM Grosvenor is an American alternative asset management firm, with approximately $76 billion in assets under management and approximately 530 professionals as of 2023.

<span class="mw-page-title-main">Ardian (company)</span> Private equity investment company

Ardian is a France-based, independent private equity investment company, founded and managed by Dominique Senequier. It is one of the largest European-headquartered private equity funds. The company was originally set up by Dominique Senequier in 1996 as the AXA Group's private equity division, but later gained independence in 2013, and rebranded itself as Ardian. The name Ardian (ar・di・an) was inspired by an ancient European language in which 'hardjan' mean strength, durability, and boldness. Ardian manages assets worth US$150 billion in Europe, North America and Asia, and has fifteen offices. The firm offers a funds of funds, direct funds, infrastructure, private debt and real estate, and manages a direct portfolio of more than 150 companies. Its fund of funds segments owns stakes in over 1500 funds. Ardian's 880 investors include institutional investors, funds of funds, government agencies, sovereign funds, family offices, pension funds and insurance companies). The firm has been ranked one of the largest companies by amount raised in equity by Private Equity International, and was named "Company of the Year" 2013 by the readers of Private Equity International.

<span class="mw-page-title-main">CDH Investments</span>

CDH Investments is a major Chinese alternative asset management firm based in Beijing, China. It specializes in private equity, venture capital and credit products. CDH invests across a range of sectors and regions. As of March 2015, CDH manages over RMB 100 billion of investor capital across its various investment platforms.

<span class="mw-page-title-main">BPEA EQT</span> Asian private equity firm

BPEA EQT is an Asian investment firm headquartered in Hong Kong. Previously it was an affiliate of Barings Bank before becoming an independent firm. In 2022, it was acquired by EQT Partners to act as its Asian investment platform. BPEA EQT is one of the largest private equity firms in Asia.

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
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.