{"id":30,"date":"2024-09-30T18:25:28","date_gmt":"2024-09-30T18:25:28","guid":{"rendered":"http:\/\/lexington.local\/?page_id=30"},"modified":"2026-03-12T20:40:23","modified_gmt":"2026-03-12T20:40:23","slug":"secondaries","status":"publish","type":"page","link":"https:\/\/www.lexingtonpartners.com\/investment-strategies\/secondaries\/","title":{"rendered":"Secondaries"},"content":{"rendered":"
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Lexington Partners helped establish the development of the institutional secondary market in 1990<\/h4>\n<\/div>\n\n\n\n
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A Secondary Market Pioneer<\/h3>\n\n\n\n

Lexington identified the need for a liquid secondary market in which global investors could sell their private equity and alternative interests. We\u2019ve remained an industry leader as secondaries have evolved to be a mature, complex, and dynamic market.<\/p>\n\n\n\n

Lexington\u2019s secondary funds pursue two strategies:<\/p>\n\n\n\n

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DIVERSIFIED SECONDARIES<\/a><\/div>\n\n\n\n
CONTINUATION VEHICLES<\/a><\/div>\n<\/div>\n<\/div>\n\n<\/div>\n<\/section>\n\n\n
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\n <\/span>35<\/span><\/span>\n <\/h2>\n

Years of Dedicated
\u2028Secondary Experience<\/p>\n <\/div>\n

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\n $<\/span>66<\/span>B+<\/span>\n <\/h2>\n

Total Capitalization\u00a0<\/p>\n <\/div>\n

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\n <\/span>21\u00a0<\/span><\/span>\n <\/h2>\n

Secondary Funds\u00a0<\/p>\n <\/div>\n

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\n <\/span>70<\/span>+<\/span>\n <\/h2>\n

Dedicated Secondary
Professionals\u00a0<\/p>\n <\/div>\n

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\n $<\/span>52<\/span>B+<\/span>\n <\/h2>\n

Invested\u00a0<\/p>\n <\/div>\n

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\n <\/span>750<\/span>+<\/span>\n <\/h2>\n

Secondary Transactions\u00a0<\/p>\n <\/div>\n

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\n <\/span>3,000<\/span>+<\/span>\n <\/h2>\n

Funds Invested\u00a0<\/p>\n <\/div>\n

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\n <\/span>5,200<\/span>+<\/span>\n <\/h2>\n

Interests Acquired\u00a0<\/p>\n <\/div>\n <\/div>\n \n<\/div>\n<\/section>\n\n\n\n

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Lexington\u2019s sourcing funnel is broad. In 2025, Lexington sourced $300+ billion of secondary<\/span> opportunities, which allows us to be very selective<\/h4>\n\n<\/div>\n <\/div>\n <\/div>\n\n\n\n\n
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The long-term nature of private equity and alternative investments can present secondary market opportunities when factors such as portfolio rebalancing, government regulation, overallocation, and general liquidity needs give rise to investors actively managing their private investment allocations.<\/p>\n\n\n\n

Lexington\u2019s counterparty reputation, breadth of relationships and strength of capital are widely recognized by global sellers.<\/p>\n<\/div>\n\n<\/div>\n<\/div>\n<\/section>\n\n\n

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Target
Transaction Types<\/h3>\n\n\n\n

Lexington\u2019s investment professionals have deep expertise across the full spectrum of secondary transaction types with a focus on diversified partnership portfolios and GP-led transactions.<\/p>\n\n<\/div>\n

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Partnership Transactions<\/p>\n

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\n \"background\n <\/div>\n <\/div>\n
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\n Partnership Transactions\n <\/p>\n

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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 \u201csolutions\u201d portfolios where our large discretionary capital base, syndication capability, structuring capability, proven execution experience, and counterparty transaction experience are key to completion.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n

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Continuation Vehicles
\u2028& other GP-Led Transactions<\/p>\n

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\n \"background\n <\/div>\n <\/div>\n
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\n Continuation Vehicles
\u2028& other GP-Led Transactions\n <\/p>\n

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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.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n

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Opportunistic transactions<\/p>\n

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\n \"background\n <\/div>\n <\/div>\n
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\n Opportunistic transactions\n <\/p>\n

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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.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n