Lexington Partners
| Company type | Private |
|---|---|
| Industry | Private equity, Secondary market investments |
| Founded | 1994 |
| Founder | Brent R. Nicklas |
| Headquarters | New York City , United States |
Area served | Global |
Key people | Brent R. Nicklas (Founder) |
| Products | Secondary market acquisitions, Co-investment funds |
| Parent | Franklin Templeton (since 2022) |
Lexington Partners stands as a prominent global manager specializing in secondary market acquisitions and co-investment funds. Established in 1994, the firm oversees close to $55 billion in assets, including $14 billion allocated to its ninth fund, Lexington Capital Partners IX, which closed in January 2020 and was the largest dedicated secondaries fund raised at that time.
Based in New York City, Lexington maintains a global presence with offices located in Boston, Menlo Park, London, Hong Kong, Santiago, São Paulo, and Luxembourg.
History
Brent R. Nicklas, previously a founding member of Landmark Partners, founded Lexington and played a foundational role in shaping the secondary market through transactions dating back to 1993.
On November 1, 2021, Franklin Templeton announced its acquisition of Lexington Partners for $1.75 billion in cash, a deal finalized on April 5, 2022, strengthening Franklin Templeton’s foothold in private equity secondaries.
Investment program
Functioning as a fund of funds, Lexington acquires stakes in a diverse range of investment funds, predominantly structured as limited partnerships. Its investments span venture capital, leveraged buyout, and mezzanine capital funds, as well as portfolios or interests sourced from institutions, corporations, government entities, and family offices.
As a specialist in secondaries, Lexington has limited capacity to make new primary private equity fund commitments but selectively invests in emerging private equity funds. Additionally, it manages equity co-investment vehicles alongside worldwide private equity sponsors. Lexington’s secondary funds have committed capital to over 500 new private equity funds, while its co-investment platforms have deployed more than $7 billion across upwards of 400 co-investments throughout the U.S., Europe, and Asia.
The firm’s limited partners encompass public and corporate pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, foundations, and family offices from over 40 countries.
Notable transactions
Since its inception in 1994, Lexington has executed more than 500 secondary market transactions. Key publicly disclosed deals and milestones include:
- 2022 – Franklin Templeton completed the $1.75 billion all-cash acquisition of Lexington Partners.
- 2021 – Launched fundraising efforts for Lexington Partners X with a target of $15 billion.
- 2020 – Secured a record $14 billion for Lexington Partners IX and related vehicles.
- 2018 – Led the $1.2 billion secondary transaction involving Warburg Pincus Asia.
- 2017 – Finalized a $1 billion secondary transaction with BC Partners; acquired a venture capital portfolio stake from German broadcaster ProSiebenSat.
- 2016 – Established an office in Santiago, Chile to serve as the firm’s Latin American hub, marking its sixth global location.
- 2015 – Closed its eighth private equity secondary fund at the $10.1 billion hard cap, surpassing an $8 billion target; collaborated with Lothian Pension Fund to acquire an interest in a tail-end Macquarie fund.
- 2014 – Assisted J.P. Morgan in divesting nearly half of its stake in One Equity Partners.
- 2013 – Closed Lexington Co-Investment Partners III LP with over $1.5 billion raised, expanding its co-investment program to approximately $4 billion.
- 2011 – Raised $7 billion for its seventh global secondary fund (LCP VII).
- 2010 – Purchased Citi’s private equity portfolio valued at $900 million.
- 2008 – Took part in a buyer consortium acquiring CalPERS’ legacy private equity portfolio worth up to $1.5 billion.
- 2007 – Led a $200 million secondary spin-out deal acquiring a 70% interest in 19 investments.
- 2006 – Acquired a $1 billion portfolio from American Capital Strategies alongside other secondary investors.
- 2005 – Bought a $1.2 billion secondary portfolio from Dayton Power & Light with AlpInvest Partners.
- 2004 – Launched a dedicated secondary fund focused on private equity interests less than half funded.
- 2003 – Closed its fifth fund at $2 billion after two years of fundraising efforts.
- 2000 – Acquired a $500 million portfolio from Chase Capital Partners with Hamilton Lane; also purchased nearly $1 billion of direct equity investments from NatWest together with Coller Capital.
- 1998 – Created CIP I, one of the earliest independent discretionary co-investment programs partnered with a major U.S. institutional investor.
- 1994 – Completed one of the pioneering mezzanine fund interest purchases from a banking institution.
These transactions highlight Lexington’s strategic emphasis on providing liquidity solutions within the secondary market alongside co-investment opportunities across international markets.