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* 2008 — CalPERS agreed to the sale of a portfolio of legacy private equity funds, having started marketing it in late 2007.<ref>Tracy, Tennille. [http://blogs.wsj.com/deals/2007/11/05/calpers-and-where-private-equity-funds-go-to-die/?mod=WSJBlog Calpers, and where private-equity funds go to die.] Wall Street Journal's ''Deal Journal'' blog, November 5, 2007.</ref> A buyer group comprising Oak Hill Investment Management, Conversus Capital, Lexington Partners, [[HarbourVest]], and [[Pantheon Ventures]] paid as much as $3 billion for the portfolio.<ref>Craig, Catherine. [http://www.efinancialnews.com/usedition/index/content/2449731094 Five buy record $3bn Calpers portfolio.] ''Financial News'', February 5, 2008.</ref> (CalPERS is an existing investor in funds managed by Lexington.<ref>CalPERS. [https://www.calpers.ca.gov/index.jsp?bc=/investments/assets/equities/aim/mgrs/i-l.xml AIM Program Active Investment Managers. Investment Managers I-L.] December 31, 2007. Retrieved October 22, 2008.</ref>)
* 2008 — CalPERS agreed to the sale of a portfolio of legacy private equity funds, having started marketing it in late 2007.<ref>Tracy, Tennille. [http://blogs.wsj.com/deals/2007/11/05/calpers-and-where-private-equity-funds-go-to-die/?mod=WSJBlog Calpers, and where private-equity funds go to die.] Wall Street Journal's ''Deal Journal'' blog, November 5, 2007.</ref> A buyer group comprising Oak Hill Investment Management, Conversus Capital, Lexington Partners, [[HarbourVest]], and [[Pantheon Ventures]] paid as much as $3 billion for the portfolio.<ref>Craig, Catherine. [http://www.efinancialnews.com/usedition/index/content/2449731094 Five buy record $3bn Calpers portfolio.] ''Financial News'', February 5, 2008.</ref> (CalPERS is an existing investor in funds managed by Lexington.<ref>CalPERS. [https://www.calpers.ca.gov/index.jsp?bc=/investments/assets/equities/aim/mgrs/i-l.xml AIM Program Active Investment Managers. Investment Managers I-L.] December 31, 2007. Retrieved October 22, 2008.</ref>)
* 2007 – Lexington Partners lead a secondary spin-out transaction from a hedge fund, a $200 million transaction to acquire 70% stake in 19 investments.{{citation needed|date=June 2010}}
* 2007 – Lexington Partners lead a secondary spin-out transaction from a hedge fund, a $200 million transaction to acquire 70% stake in 19 investments.{{citation needed|date=June 2010}}
* 2006 — [[American Capital Strategies]] sold a $1 billion portfolio of investments to a consortium of secondary buyers including Lexington Partners, [[HarbourVest Partners]] and [[Partners Group]].<ref>[http://www.altassets.com/news/arc/2006/nz9445.php American Capital raises $1bn fund]</ref><ref>[http://www.thedeal.com/servlet/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=NULL&c=TDDArticle&cid=1159926373249 ACS spins off stakes into $1B fund] (TheDeal.com)</ref>
* 2006 — [[American Capital Strategies]] sold a $1 billion portfolio of investments to a consortium of secondary buyers including Lexington Partners, [[HarbourVest Partners]] and [[Partners Group]].<ref>[https://www.altassets.net/private-equity-news/american-capital-raises-1bn-fund.html American Capital raises $1bn fund (AltAssets.net)]</ref><ref>[http://www.thedeal.com/servlet/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=NULL&c=TDDArticle&cid=1159926373249 ACS spins off stakes into $1B fund] (TheDeal.com)</ref>
* 2005 — Lexington Partners and AlpInvest Partners acquired a portfolio of private equity fund interests from [[Dayton Power & Light]], an Ohio-based electric utility.<ref>[https://www.altassets.net/private-equity-news/alpinvest-and-lexington-partners-buy-1-2bn-secondary-portfolio-from-dpl.html AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL]</ref><ref>[http://www.thedeal.com/servlet/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=NULL&c=TDDArticle&cid=1107993038709 DPL to sell PE stakes for $850M] (TheDeal.com)</ref>
* 2005 — Lexington Partners and AlpInvest Partners acquired a portfolio of private equity fund interests from [[Dayton Power & Light]], an Ohio-based electric utility.<ref>[https://www.altassets.net/private-equity-news/alpinvest-and-lexington-partners-buy-1-2bn-secondary-portfolio-from-dpl.html(AltAssets.net) AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL]</ref><ref>[http://www.thedeal.com/servlet/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=NULL&c=TDDArticle&cid=1107993038709 DPL to sell PE stakes for $850M] (TheDeal.com)</ref>
* 2004 – Lexington Partners formed a dedicated secondary fund to acquire private equity interests that were less than 50% funded.<ref>[https://www.pehub.com/buyouts/lexington-aims-at-middle-market/ Lexington Aims at Middle Market]</ref>
* 2004 – Lexington Partners formed a dedicated secondary fund to acquire private equity interests that were less than 50% funded.<ref>[https://www.pehub.com/buyouts/lexington-aims-at-middle-market/ Lexington Aims at Middle Market]</ref>
* 2003 — Lexington closed on $2 billion for its fifth fund after two years of marketing.<ref>[https://www.altassets.net/private-equity-news/us-secondaries-specialist-lexington-partners-closes-fund-on-2bn.html US secondaries specialist Lexington Partners closes fund on $2bn]</ref><ref>[https://www.altassets.net/private-equity-news/secondaries-specialist-lexington-partners-moves-towards-2bn-fund-target.html Secondaries specialist Lexington Partners moves towards $2.0bn fund target]</ref>
* 2003 — Lexington closed on $2 billion for its fifth fund after two years of marketing.<ref>[https://www.altassets.net/private-equity-news/us-secondaries-specialist-lexington-partners-closes-fund-on-2bn.html US secondaries specialist Lexington Partners closes fund on $2bn]</ref><ref>[https://www.altassets.net/private-equity-news/secondaries-specialist-lexington-partners-moves-towards-2bn-fund-target.html Secondaries specialist Lexington Partners moves towards $2.0bn fund target]</ref>

Revision as of 19:51, 25 July 2017

Lexington Partners
Company typePrivate Ownership
IndustryPrivate Equity
Founded1994; 30 years ago (1994)
HeadquartersNew York, NY, United States
ProductsSecondary Investments,
Equity co-investments,
Fund Investments
Total assets$35 billion
Number of employees
100+
Websitewww.lexingtonpartners.com

Lexington Partners, is a leading independent manager of secondary private equity and co-Investment funds, founded in 1994. Lexington manages approximately $35 billion of which an unprecedented $10.1 billion was committed to the firm's eighth fund (Lexington Capital Partners VIII, closed in 2015).[1] The largest dedicated secondaries vehicle ever raised at the time.[2]

Lexington Partners was founded by Brent Nicklas,[3] who was previously a founding member of Landmark Partners.

Lexington is headquartered in New York with offices in Boston, Menlo Park, London, Hong Kong and Santiago.

Investment program

Lexington invests much like 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 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 global private equity sponsors. Lexington’s secondary funds have committed to over 325 newly formed private equity funds while Lexington’s co-investment funds have committed to invest over $4.1 billion in 240 co-investments in the U.S., Europe and Asia.

Lexington’s limited partners include public and corporate pension funds, sovereign wealth funds, insurance companies, financial institutions, endowments, foundations, and family offices from over 30 countries.

History and notable transactions

Since 1994, Lexington has stated that it has completed over 400 secondary market transactions. Although most secondary transactions are private, the following are notable publicly disclosed transactions and firm milestones:

  • 2014 — J.P. Morgan to Sell Roughly Half Its Stake in One Equity Partners.[4]
  • 2010 — Citi Unloaded $900 Million Private Equity Portfolio.[5]
  • 2008 — CalPERS agreed to the sale of a portfolio of legacy private equity funds, having started marketing it in late 2007.[6] A buyer group comprising Oak Hill Investment Management, Conversus Capital, Lexington Partners, HarbourVest, and Pantheon Ventures paid as much as $3 billion for the portfolio.[7] (CalPERS is an existing investor in funds managed by Lexington.[8])
  • 2007 – Lexington Partners lead a secondary spin-out transaction from a hedge fund, a $200 million transaction to acquire 70% stake in 19 investments.[citation needed]
  • 2006 — American Capital Strategies sold a $1 billion portfolio of investments to a consortium of secondary buyers including Lexington Partners, HarbourVest Partners and Partners Group.[9][10]
  • 2005 — Lexington Partners and AlpInvest Partners acquired a portfolio of private equity fund interests from Dayton Power & Light, an Ohio-based electric utility.[11][12]
  • 2004 – Lexington Partners formed a dedicated secondary fund to acquire private equity interests that were less than 50% funded.[13]
  • 2003 — Lexington closed on $2 billion for its fifth fund after two years of marketing.[14][15]
  • 2000 — Lexington Partners and Hamilton Lane acquired $500 million portfolio of private equity funds interests from Chase Capital Partners.
  • 2000 — Coller Capital and Lexington Partners completed the purchase of over 250 direct equity investments valued at nearly $1 billion from NatWest.[16]
  • 1998 – Lexington Partners established CIP I, one of the first independent, discretionary co-investment programs with a leading U.S.-based institutional investor.
  • 1994 – Lexington Partners purchased a portfolio of mezzanine fund interests from a bank, one of the first transactions of its type.
  • 1994 — Lexington Partners was launched by Brent Nicklas.[17]

Competitors

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., AlpInvest Partners, Ardian (formerly AXA Private Equity), HarbourVest Partners) and certain large financial institutions (e.g., Credit Suisse, Goldman Sachs, JP Morgan, Neuberger Berman).

References

  1. ^ Press Release Lexington Capital Partners VIII
  2. ^ AVCJ, April 22, 2015 [1], AltAssets, April 22, 2015 [2], PE HUB, April 21, 2015 [3], Real Deals, April 22, 2015 [4], Law 360, April 21, 2015 [5]
  3. ^ AVCJ Interview [6], Private Equity Analyst [7]
  4. ^ Wall Street Journal [8] , Fortune, August 11, 2014 [9]
  5. ^ PE HUB, July 10, 2010
  6. ^ Tracy, Tennille. Calpers, and where private-equity funds go to die. Wall Street Journal's Deal Journal blog, November 5, 2007.
  7. ^ Craig, Catherine. Five buy record $3bn Calpers portfolio. Financial News, February 5, 2008.
  8. ^ CalPERS. AIM Program Active Investment Managers. Investment Managers I-L. December 31, 2007. Retrieved October 22, 2008.
  9. ^ American Capital raises $1bn fund (AltAssets.net)
  10. ^ ACS spins off stakes into $1B fund (TheDeal.com)
  11. ^ AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL
  12. ^ DPL to sell PE stakes for $850M (TheDeal.com)
  13. ^ Lexington Aims at Middle Market
  14. ^ US secondaries specialist Lexington Partners closes fund on $2bn
  15. ^ Secondaries specialist Lexington Partners moves towards $2.0bn fund target
  16. ^ The Royal Bank of Scotland: asset sale
  17. ^ [10]Private Equity Analyst, 25 Years in Private Equity: A Timeline

External links

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