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Investment strategies | Secondaries

Diversified Secondaries

Diversified Secondaries

Secondary Market Leader

Lexington has been a leading participant in the global secondary market since 1990 and, through more than 700 secondary transactions, has acquired over 4,000 private investment fund interests with a total value of $75 billion on a gross basis, including $18 billion of syndications to co‑investors. Lexington has successfully acquired private investment fund interests from major public and corporate pension funds, global banks and financial institutions, sovereign wealth funds, endowments, foundations, family offices, hedge funds, funds-of-funds, private equity and alternative sponsors, and listed private equity vehicles.

Lexington’s experienced secondary team has employed a consistent investment and portfolio construction strategy in its diversified secondary portfolios, which we believe has contributed to the firm’s success.

Global Secondaries

Lexington helped pioneer the development of the institutional global secondary market over 30 years ago. Lexington believes that the firm’s knowledge of private investments gained from its long history as a leading global secondary manager has enabled it to originate, analyze, negotiate, and close a variety of global secondary transactions, ranging from complex portfolio acquisitions to GP-led transactions.

Through Lexington’s global secondary strategy, the Firm seeks to acquire assets that are, collectively, diversified by underlying manager, fund, sector, strategy, geography, vintage year, industry, company, and point-in-time of purchase.

  1. Sector

    Lexington’s global secondary strategy seeks to acquire primarily buyout, growth, and venture capital interests. We believe our team’s long-standing experience investing in these sectors enables us to efficiently source, analyze, negotiate, and close high-quality transactions and allows us to provide holistic solutions for sellers.

  2. Geography

    While our global secondary exposure is predominantly U.S., Lexington also acquires non-U.S. exposure, primarily to U.K. and Western European sponsors, with some exposure to Asia and Latin America, where Lexington has investment professionals in local offices.

  3. Vintage Year

    Lexington seeks to acquire global secondary interests with attractive reverse vintage year exposure.

  4. Deployment

    Lexington seeks to deploy capital consistently to the global secondary market through economic cycles.

Middle Market
Secondaries

Lexington designed an innovative dedicated middle‑market secondary strategy 20 years ago to acquire high‑quality U.S. and European middle market buyout exposure. Lexington’s middle market secondary program is one of the only scaled dedicated strategies of its kind. Through Lexington’s middle market secondary strategy, the Firm seeks to acquire interests in funds that invest in small- and mid-sized businesses, generally with attractive growth potential, modest leverage, and substantial value creation opportunities from accretive acquisitions and operational improvements.

We believe Lexington’s substantial secondary investment experience, breadth of sponsor relationships with over 260+ middle market buyout GPs, counterparty reputation, and extensive database of private information established over decades of secondary investing makes us an attractive acquirer of these middle market assets. 

OUR
SECONDARIES TEAM

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MILESTONES