Simpson Thacher Leads Lexington To $22.7B Secondary Fund

Simpson Thacher Leads Lexington To $22.7B Secondary Fund

Lexington Partners, under the strategic counsel of Simpson Thacher & Bartlett LLP, triumphantly declared on Tuesday the closure of its colossal secondary fund, Lexington Capital Partners X LP, amassing an extraordinary $22.7 billion in capital commitments. This financial juggernaut, which surpassed its initial $15 billion target, is set to revolutionize the private equity and alternative asset partnership landscape.

Breaking Records and Shattering Expectations

In a dazzling feat, Lexington Capital Partners X LP not only eclipsed its predecessor, a $14 billion giant that dominated the market in 2020, but also soared to unprecedented heights. The fund, had it concluded a few weeks earlier, would have clinched the coveted third position among the largest funds closed in the entirety of 2023, leaving an indelible mark on the financial landscape.

Simpson Thacher Leads Lexington To $22.7B Secondary Fund : Unveiling the Global Opportunity

Lexington’s President, Wil Warren, hailed this monumental achievement as a testament to the boundless potential in the global secondary market. “This milestone fundraise reflects the tremendous opportunity in the global secondary market and Lexington’s proven ability to leverage our scale, experience, relationships, and worldwide platform to unlock value for our investors,” remarked Warren. He expressed gratitude for the unwavering support from both existing and new investors worldwide, recognizing their pivotal role in propelling Lexington to new heights.

Unprecedented Market Expansion

Lexington’s secondary strategy, strategically aligned with private equity and alternative asset partnership acquisitions, has been a resounding success. The fund’s success is attributed to its adept handling of portfolios from major investors navigating allocation rebalances or seeking liquidity. A specialist investment manager under the umbrella of global investment management organization Franklin Templeton, Lexington foresees sustained growth in the secondary market. This projection is fueled by the substantial capital committed to private funds and the increasing willingness of limited partners to employ the secondary market for portfolio management.

Broad Spectrum of Transactions

The fund, now over 40% committed across a spectrum of more than 50 transactions, boasts a diverse pool of sellers, including public and corporate pensions, banks, and various financial institutions. This staggering success showcases Lexington’s prowess in navigating complex transactions and underscores its significance in the evolving financial landscape.

Simpson Thacher Leads Lexington To $22.7B Secondary Fund : Global Backing and Diverse Support

Lexington Capital Partners X LP garnered support from a formidable alliance of over 400 investors, ranging from public and corporate pensions to sovereign wealth funds, insurance companies, endowments, foundations, family offices, and wealth distribution partners across North America, Europe, the Asia-Pacific region, Latin America, and the Middle East. This widespread backing attests to the fund’s global resonance and confidence instilled across diverse financial landscapes.

Simpson Thacher’s Strategic Guidance

The driving force behind this triumph is the strategic counsel provided by the Simpson Thacher team. Led by funds partners Barrie Covit, Steven Klar, and Matthew Leighton, the team includes tax partner Jonathan Goldstein and credit partner Ashley Belton Gold. Their expertise and insight played a pivotal role in shaping the success of Lexington’s latest venture.