Lexington Partners brings PE expertise to local | Australian Markets

Global secondaries and personal equity powerhouse, Lexington Partners, has entered the local market by way of a registered managed investment scheme (MIS) backed by Franklin Templeton’s Australian arm.

The Franklin Resources-owned specialist supervisor and Franklin Templeton Australia’s Franklin Lexington Private Equity Secondaries Fund will invest in an AUD-hedged share class of the Franklin Lexington PE Secondaries Fund (FLEX-I), a sub-fund of and thereby offering publicity to the Luxembourg-domiciled Franklin Lexington Private Markets Fund SICAV SA suite.

The fund, which can also be Lexington Partners’ first evergreen fund launched for the wealth sector internationally, seeks to democratise entry to an asset class that’s sometimes solely accessible to institutional traders by opening up the scheme to wholesale and retail traders with financial advice.

Co-managed by Lexington Partners and Franklin Templeton, the fund goals to obtain long-term capital appreciation by investing in FLEX-I and its portfolio of non-public equity investments gathered by way of secondary transactions and co-investments. The FLEX-I invests throughout non-public belongings sorts, together with buyout, growth, enterprise, credit, mezzanine, infrastructure, power and different actual belongings.

“We are thrilled to expand Franklin Templeton’s private market capabilities for our wealth clients and launch our second alternatives fund for Australian investors,” Felicity Walsh, Managing Director at Franklin Templeton Australia and New Zealand, stated.

“There is growing demand for entry to various methods that offer decrease minimums and improved liquidity. Australian traders are more and more recognising the appeal of secondary non-public equity investments, not just for diversification and liquidity, but additionally as a key entry level into their increasing non-public equity publicity.

“While secondaries may be less familiar in the retail and wholesale space, they have long been a foundational allocation for institutions due to their compelling risk-return profile, and we believe they should play a similar role in non-institutional client portfolios.”

The Franklin Lexington Private Equity Secondaries Fund leverages the in depth historical past of Lexington Partners within the institutional secondary market and the sturdy expertise of its 26 companions averaging a mixed 18 years of expertise.

The managers stated the fund enters the market at a time of vital growth in secondary non-public equities, with the sector anticipated to surpass US$500 billion within the subsequent 5 years. Investors additionally reap the advantages of FLEX-I’s international attain, boasting US$875 million in belongings underneath management (AUM) throughout APAC, EMEA, Canada and Latin America.

“Scale is a key advantage in the secondaries market, and Lexington’s ability to raise substantial funds positions us strongly to pursue large, high-quality portfolio opportunities that are often out of reach for smaller players,” John Lee, Partner at Lexington, stated.

“This fund is designed to complement our traditional closed-ended funds, while offering a more flexible, evergreen structure tailored to investors seeking long-term, risk-adjusted returns. It also underscores our commitment to delivering impactful investment solutions to our clients.”