Investment Focus & Thesis

Lexington Partners focuses on providing liquidity and co-investment solutions: Investment Range Secondary transactions typically range from $10M-$500M+. Stage Focus Co-investments alongside sponsors and secondary LP interests. Secondaries — Purchases of existing private equity fund interests and direct portfolio company stakes Co-Investments — Direct co-investments alongside private equity sponsors in portfolio companies Complex Transactions — Restructured transactions and carve-out situations Multi-Strategy — Investments across venture, growth, buyout, and distressed strategies

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: Transaction Type Strategy Region Year Fund Secondary Buyout North America 2024 Co-Investment Growth Europe 2024 Direct Secondary Technology North America 2024 Fund Secondary Venture Global 2023 Lexington is known for its deep relationships with general partners and ability to execute complex transactions.

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 For companies seeking capital, Lexington's co-investment model can provide additional capital alongside primary PE sponsors.

The Value of Professional Financial Infrastructure

Companies that work with PE firms connected to Lexington or seek co-investment structures must have solid financial infrastructure: Financial Foundation • Clean financials • EBITDA optimization • Management reporting • Cash flow forecasting Growth Foundation • 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

Prepare detailed financial projections and operational metrics before initial meetings.

Frequently Asked Questions

What industries does focus on?

primarily invests in Technology. The firm seeks companies with strong market positions and clear growth trajectories.

What size companies does acquire?

typically invests $10M-$500M in equity, targeting companies with enterprise values in the lower to middle market range.

What is 's 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 's due diligence process take?

Due diligence timelines vary by deal complexity, but typically conducts thorough financial, operational, and market due diligence over several weeks to months.

What should I prepare before engaging with ?

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 work with portfolio companies?

takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.

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This article is part of our Private equity firms | Eagle Rock CFO guide.