Lexington Partners Raises $22.7B for Global Secondary Fund
Lexington Partners, a wholly owned subsidiary of Franklin Templeton and secondary acquisition funds manager, completed fundraising for Lexington Capital Partners X, L.P. at $22.7 billion.
The fund exceeded its $15 billion target and easily surpassed the firm’s predecessor fund, LCP IX, which closed on $14 billion in 2020.
The fund’s strategy is largely focused on the acquisition of private equity and alternative asset partnership portfolios from investors as they rebalance their allocations or seek liquidity.
LCP X is a 2022 vintage fund that is now more than 40% committed across more than 50 transactions with a variety of sellers, including public and corporate pensions, banks and other financial institutions, Lexington added.
“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,” said Pål Ristvedt, partner of Lexington. “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 Capital Partners X was backed by over 400 investors, including public and corporate pensions, sovereign wealth funds and insurance companies in North America, Europe, Asia Pacific, Latin America and the Middle East.
According to Lexington’s estimates, 2023 will be the third consecutive year in which secondary industry volume will surpass $100 billion.