Continuation Vehicles

Differentiated Approach to Investing in CVs at Scale

Lexington has been an active participant in the GP-led part of the secondary market, working with sponsors to provide liquidity solutions for their investors and to extend hold periods to allow for assets to further compound in value. We have seen rapid growth in this market segment driven by broad sponsor adoption. Over the past 10 years, Lexington estimates that the GP-led market has grown tenfold, as sponsors continue to utilize continuation vehicle (“CV”) transactions to re-invest in their highest-quality companies. Single-asset continuation vehicle (“SCV”) transactions have grown significantly since 2018, and we believe the dry powder available for these deals is the predominant limiting factor for volume growth in the market.

Lexington expects to see continued growth in the single-asset continuation vehicle market as sponsors increasingly use these transactions as a tool to retain their most attractive assets while generating a liquidity option for limited partners. Lexington’s scale and experience as one of the largest secondary specialist platforms positions us to be a leading and differentiated investor in this segment of the market.