Lexington breaks records with $22.7bn flagship raise

Lexington Capital Partners X is more than 60% larger than its predecessor, which closed on $14bn in 2020.

Lexington Partners has broken the record for the largest secondaries fund ever raised, closing on $22.7 billion for its latest flagship fund.

Lexington Capital Partners X, which launched in 2021, significantly surpassed its $15 billion target, according to Secondaries Investor data. It also roared ahead of its $14 billion predecessor, which closed in 2020.

LCP X will focus on the acquisition of LP-led portfolios from large-scale investors, according to a statement. It will also seek out smaller opportunities for LP-leds where Lexington has deep industry relationships, as well as GP-led transactions.

“This milestone fundraise reflects the tremendous opportunity in the global secondaries market and Lexington’s proven ability to leverage our scale, experience, relationships and worldwide platform to unlock value for our investors,” Wil Warren, president of Lexington, said in the statement.

LCP X, a 2022-vintage vehicle, is already more than 40 percent committed across over 50 transactions involving a variety of sellers, including public and corporate pensions, banks and other financial institutions, the statement said. The fund received commitments from more than 400 investors, including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, foundations, family offices and wealth channel distribution partners globally.

LPs in the fund include Cathay Life Insurance, Fubon Life Insurance, Minnesota State Board of Investment, New York City Employees’ Retirement System and New York City Police Pension Fund, Secondaries Investor data shows.

The fund is the first Lexington vehicle raised under the ownership of Franklin Templeton, which acquired the secondaries specialist in 2022.

LCP X surpasses Blackstone Strategic Partners’ raise for Strategic Partners IX, which held the previous record and closed on $22.2 billion in January last year.

Lexington and Ardian previously held the record for the largest secondaries funds ever raised amassing $14 billion in commitments for LCP IX and Ardian Secondary Fund VIII. Ardian remains in market with Ardian Secondary Fund IX, which has reportedly surpassed $20 billion.

Lexington estimates 2023 will be the third consecutive year secondaries volume will have surpassed $100 billion.

“We believe we’re in the early stages of a generational secondaries buying opportunity in private markets that will take multiple years to play out,” Lexington partner Pål Ristvedt said in the statement. “During times of economic uncertainty and slowing portfolio company exits, the secondaries market can be an important release valve to provide liquidity to investors.”