| Type | Private Ownership |
|---|---|
| Industry | Private Equity |
| Founded | 1994 |
| Headquarters | New York, NY, United States |
| Products | Secondary Investments, Equity co-investments, Fund Investments |
| Total assets | $18 billion |
| Employees | 60+ |
| Website | www.lexingtonpartners.com |
Lexington Partners, is a leading independent manager of secondary private equity and co-Investment funds, founded in 1994. Lexington Partners manages approximately $18 billion of which $3.8 billion was committed to the firm's sixth and latest fund (Lexington Capital Partners VI, closed in 2006)[1].
Lexington was founded by former investment professionals Brent Nicklas and Richard Lichter, who had previously worked together at Landmark Partners. Lichter subsequently left Lexington to head the secondaries group at another fund of funds before founding Newbury Partners in 2006.[2]
Lexington is headquartered in New York with offices in Boston, Menlo Park and London.
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Lexington invests primarily as a fund of funds, purchasing interests in various investment funds, typically structured as limited partnerships. Lexington Partners acquires positions in venture capital, leveraged buyout and mezzanine capital funds, together with portfolios of companies or stakes in companies from institutions, corporates, government bodies and family offices.
Lexington is reported to be raising a new $5.0 billion secondary fund, which would be the largest active fund in the secondary market, eclipsing Coller Capital's $4.8 billion fund. The two firms have alternated the leadership position in recent years.
Lexington is a dedicated secondaries investor and like many of its peers has limited ability to make new commitments to private equity funds. While in certain instances this impacts the firm's desirability to general partners as a replacement limited partner, Lexington does make strategic commitments to newly formed private equity funds. The firm also manages equity co-investment vehicles that invest alongside financial sponsors. Lexington’s secondary funds have committed to over 190 newly formed private equity funds while Lexington’s co-investment funds have committed to invest over $1.9 billion in 86 co-investments in the U.S. and Europe.
Lexington’s limited partners include corporate and public pension funds, sovereign investment authorities, insurance companies, financial institutions, endowments, foundations and family offices.
Since 1994, Lexington has stated that it has completed over 270 secondary market transactions. Although most secondary transactions are private, the following are notable publicly disclosed transactions and firm milestones:
Lexington regularly competes against dedicated secondary investors such as Coller Capital and Landmark Partners as well as secondary players that also have active fund of funds platforms (e.g., Adams Street Partners, AlpInvest Partners, AXA Private Equity, HarbourVest Partners) and certain large financial institutions (e.g., Credit Suisse, Goldman Sachs, JP Morgan, Neuberger Berman). To a lesser extent, Lexington competes against mid-sized secondary firms (e.g., Newbury Partners, Paul Capital, Pomona Capital).
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