Lexington Partners: The $50B Secondaries Specialist That Most Founders Don't Know Exists
Lexington is one of the largest private equity firms in the world — and most founders have never heard of them. Here's what secondaries and co-investments actually mean for your cap table.
Key Takeaways
- •Focus on Technology companies
- •Investment range: $10M-$500M in equity
- •Based in United States
- •Control-oriented investments
- •Growth equity focus
Recent Investment Activity
Lexington has maintained strong activity in secondaries and co-investments:
- Fund Secondary — Buyout — North America — 2024
- Co-Investment — Growth — Europe — 2024
- Direct Secondary — Technology — North America — 2024
- Fund Secondary — Venture — Global — 2023
Investment Approach
Lexington Partners takes a research-intensive approach to secondaries and co-investments:
- Due Diligence — Rigorous analysis of underlying assets and fund performance
- GP Relationships — Strong relationships with general partners for co-investment access
- Flexible Capital — Ability to structure complex transactions to meet seller needs
- Global Reach — Access to opportunities across North America, Europe, and Asia
What Lexington Partners Looks For
Lexington evaluates opportunities based on several key criteria:
- Asset quality — Strong underlying companies with sustainable competitive positions
- Value opportunity — Discount to intrinsic value with clear path to appreciation
- GP alignment — Strong relationships with general partners and alignment with investors
- Operational improvement — Potential for operational improvements post-acquisition
- Exit potential — Clear pathways to liquidity through IPO or strategic sale
Pro Tip
- Companies that work with PE firms connected to Lexington or seek co-investment structures must have solid financial infrastructure:
- Clean financials
- EBITDA optimization
- Management reporting
- Cash flow forecasting
- Growth strategy
- Market analysis
- Competitive positioning
- Three-statement models
How Eagle Rock Helps
We help companies prepare for PE investment by building financial infrastructure and creating compelling investment materials. Our fractional CFO services ensure you're ready to engage with PE firms.
Pro Tip
Frequently Asked Questions
What industries does Lexington Partners focus on?
Lexington Partners primarily invests in Technology. The firm seeks companies with strong market positions and clear growth trajectories.
What size companies does Lexington Partners acquire?
Lexington Partners typically invests $10M-$500M in equity, targeting companies with enterprise values in the lower to middle market range.
What is Lexington Partners' typical investment size?
The firm's equity investments generally range from $10M-$500M, positioning them as active investors who can provide meaningful capital for growth.
How long does Lexington Partners' due diligence process take?
Due diligence timelines vary by deal complexity, but Lexington Partners typically conducts thorough financial, operational, and market due diligence over several weeks to months.
What should I prepare before engaging with Lexington Partners?
Prepare three years of audited financials, detailed market analysis, management team bios, growth plans, and a clear vision for how the partnership would create value.
How does Lexington Partners work with portfolio companies?
Lexington Partners takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.
Ready to Connect With Lexington Partners?
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Learn MoreThis article is part of our Private equity firms | Eagle Rock CFO guide.
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