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34 

Years of Dedicated

Secondary Experience

$66B+

Total Capitalization 

21 

Secondary Funds 

55+

Dedicated Secondary
Professionals 

$40B+

Invested 

700+

Secondary Transactions 

2,700+

Funds Invested 

5,000+

Interests Acquired 

Partnership Transactions

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Partnership Transactions

There are many drivers for investors to sell all or part of their private investment fund portfolios in the secondary market, including active management, mergers and acquisitions, government regulation, and general liquidity needs. In the current environment, Lexington has chosen to focus on more complex “solutions” portfolios where our large discretionary capital base, syndication capability, structuring capability, proven execution experience, and counterparty transaction experience are key to completion.

Continuation Vehicles

& other GP-Led Transactions

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Continuation Vehicles

& other GP-Led Transactions

In addition to the trend towards more active management of private investment fund portfolios by investors, the emergence of a well-capitalized secondary market has created opportunities for sponsors themselves. Lexington believes that GP-led transactions, driven by continuation vehicles, will continue to comprise a growing share of transaction volume as sponsors continue to recognize the utility of providing additional liquidity opportunities to limited partners and enabling further value creation in high-quality portfolio investments. A continuation vehicle typically involves a new multi-asset or single-asset vehicle established for portfolio investment(s) in a legacy fund managed by the same sponsor. Other major types of GP-led transactions include tender offers, strip sales, and spin-outs.

Opportunistic transactions

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Opportunistic transactions

Direct secondary investments, hedge fund private equity assets, institutional equity co-investments, and preferred equity transactions represent substantial additional opportunities in the growing secondary market.

Active Portfolio Management

Turnover rates and portfolio rebalancing have continued to increase due to the use of a well-capitalized secondary market that is enabling active management.

GP-Led Deal Flow

Continued growth and innovation in sponsor-led deal flow as GPs recognize the utility of providing additional liquidity opportunities to limited partners and the value of retaining high-quality assets outside of a legacy fund structure.

$ BILLIONS

$100B+

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We provide liquidity solutions to investors

We work efficiently with potential sellers, sponsors, and intermediaries to understand their specific transaction objectives, and are experienced and skilled at providing customized solutions.

We have a large global platform

We are one of the largest secondary managers and a leader in the secondary market for private equity and alternative interests on a global basis.

We are responsive

We are able to quickly price interests because we are an investor with most major global sponsors.

We are a strong counterparty

Lexington’s counterparty reputation, breadth of relationships, and strength of capital are widely recognized by sellers, GPs, and intermediaries. We have demonstrated the ability to complete large, complex, and innovative transactions in the secondary market.

We have an information advantage

Lexington has an extensive database with information on 900+ global sponsors, 2,700+ private investment funds, and 50,000+ underlying private equity portfolio companies. This information advantage allows us to conduct efficient and comprehensive due diligence as we often know how a potential seller’s private equity and alternative interests are performing before our first meeting.

We submit reliable bids

Due to the efficiency of our valuation process and the quality of our proprietary information, we are able to quickly provide reliable indicative bids.

We can facilitate strategic corporate reorganizations

Lexington has acquired the parent company’s capital account for several captive private equity groups being reorganized as independent sponsors.

We assist in the transfer process

We are very experienced in transferring secondary interests and providing the necessary investment, tax, and ERISA representations legally required by the original agreements.

We are discreet

We operate with discretion and respect for the confidentiality of the transaction and the underlying portfolio holdings.

We excel at closing deals

Lexington’s reputation for completed transactions is backed by our strong global sponsor relationships, our resourcefulness in bringing transactions together, our knowledge of the transfer process, and a strong record of successful closings.

We are an attractive substitute limited partner

We are widely accepted by private equity and alternative investment managers as a dependable limited partner with highly desirable look-through exposure to major global investors. Lexington has received GP transfer consent to acquire over 4,000 secondary interests in funds managed by more than 900 sponsors.