#USA #New York #Private Equity #Lexington Partners #Co-Investment Fund

Lexington Partners Closes Co-Investment Partners VI at $4.6 Billion

Lexington Partners, a prominent player in the global investment scene, announced today the official closure of its Lexington Co-Investment Partners VI, L.P. This fund has gathered a tremendous committed capital of $4.6 billion, significantly exceeding its original target of $4.0 billion and outpacing the previous fund's commitments of $3.5 billion from 2021. The closing of this fund marks a significant milestone in the sector, establishing it as one of the largest dedicated global co-investment funds available.

The CIP VI fund adopts the Lexington co-investment program's well-defined strategy that aims to build diversified portfolios through equity co-investments in partnership with leading private equity and growth sponsors across different regions, including North America, Europe, and various other markets worldwide. This approach ensures exposure to transactions across small, mid, and large-cap companies within various industry sectors.

Since launching in 1998, the co-investment program has raised an impressive $15 billion in total commitments. It has been instrumental in facilitating over 600 co-investments totaling more than $10.5 billion, partnering with over 200 reputable sponsors. The credibility of this program is underscored by its seasoned team, recognized as one of the most experienced in the industry, led by partners who have an average tenure of 22 years at Lexington.

In a statement regarding the successful closure of the fund, Bart Osman, a Partner at Lexington, expressed gratitude for the overwhelming support from both existing and new investors. These investors span across various regions, including North America, Europe, Asia, Latin America, and the Middle East. The participation was particularly significant from institutional pension plans, complemented by contributions from major financial institutions, corporate pensions, endowments and foundations, as well as family offices. Osman pointed out that this strong showing of confidence attests to the disciplined and thorough investment strategy implemented by Lexington, highlighting their reputable standing and the successful track record of their co-investment program, which has been in operation for nearly three decades.

Moreover, Osman noted the current landscape of co-investment is notably favorable, given the sustained demand for co-investor equity. The deeply experienced team at CIP has maintained a robust pipeline of quality deal flow from prominent General Partners (GPs), demonstrating the attractiveness of this investment environment.

Overview of Lexington Partners

Lexington Partners has carved its niche as one of the world’s preeminent managers of secondary private equity and co-investment funds, boasting a total capitalization exceeding $82 billion. Notably, the firm was a pioneer in developing the institutional secondary market over 35 years ago, and it launched one of the first independent, discretionary co-investment programs 27 years back. The firm is dedicated to providing tailored liquidity solutions that cater to both global investors and private equity sponsors, all while supported by their well-established secondary, continuation vehicle, and co-investment platforms.

Lexington’s team is strategically positioned in leading financial centers across North America, Europe, Asia, and Latin America, providing insight and expertise aimed at optimizing investment strategies within the private equity and alternative asset realms. Importantly, Lexington serves as the global specialist investment manager for secondary private equity and co-investments under the Franklin Templeton banner. For additional insights about their operations and offerings, interested parties can visit lexingtonpartners.com.

Final Thoughts

The successful closing of the Lexington Co-Investment Partners VI indicates not just the firm's robust strategy but also a strong vote of confidence from a diverse investor base in a fluctuating global economy. As demand for co-investor equity rises, Lexington Partners positions itself favorably for future endeavors and continued success in the competitive landscape of private equity investments.