Franklin Lexington

PE Secondaries Fund

Global secondaries portfolio focused on high-quality assets

Asset Class
Private Equity
Target Returns
Undisclosed
Fund Term
Open-ended
Min. Investment
SGD 10,000

Please note that this is a past offering, subscription closed on 16 May 2025.

Investment highlights

    • A perpetual diversified secondaries portfolio seeking to acquire high-quality assets poised for value creation
    • Allocations on secondaries seek to acquire seasoned investments at a discount with diversified exposure across geographies, strategies and sectors
    • Smaller allocations to primaries, co-investments and liquid assets¹
    • Managed by Lexington Partners, one of the world's largest secondary acquisition and co-investment managers²

    What are secondaries?

    A traditional secondary transaction in the private equity (PE) market is where a limited partner (“LP”) interest(s) in a private investment fund is sold to a secondary buyer at negotiated price. PE funds have long term lockups, typically between 10 and 13 years, so investor capital is illiquid. The secondary market offers a liquidity option for investors who may need cash, are looking to change their portfolio allocation, or re-balance their holdings to return to a target allocation. To do so, they work with firms that specialize in secondary market deals, which serve as liquidity providers to investors in private assets.

    There are two primary types of secondary market transactions. The first is the traditional LP transaction, where an original limited partner in a private equity fund may sell one or more partnership interests. The LP works with a secondaries firm to negotiate a purchase and sale agreement to buy that exposure. The transaction could be for a single partnership interest, or it could be a large portfolio of underlying interests. There are many different types of deal structures, but the underlying exposures do not change. Beyond having to approve the transfer, the general partner (“GP”) is essentially a passive party, and the secondaries firm steps into the selling LP’s shoes as the new transferee. The economics of the underlying fund do not change. The second most common transactions are GP-led deals, which is the fastest growing part of the secondary market. As with LP transactions, there are many different types of GP-led deal structures. The most common transactions include continuation funds and tender offers. In these instances, the GP is initiating the secondary transaction, working with a set of buyers to craft a deal to provide liquidity options to a group of LPs in an organized way.

    About Lexington Partners

    Lexington Partners has $76B in total capitalisation and is regarded as one of the most experienced secondary teams globally.³ Lexington Partners is a pioneer in the development of the institutional secondary market, with over three decades experience. In 2022, Franklin Templeton acquired Lexington Partners to bolster their range of alternative asset strategies.

    ¹ No assurances can be provided as to the liquidity of fund interests to potential investors. References to particular asset classes are for general information and are not necessarily indicative of a fund’s holding at any one time.
    ² Direct equity co-investment refers to an investment structure in which a private equity firm (General Partner) and direct co-investors collectively invest in portfolio companies
    ³ As of December 31, 2024.

    Lexington Partners is a Specialist Investment Manager that is part of the Franklin Templeton Group.

    Disclaimer: The information above has been provided by Franklin Templeton and Lexington Partners. The contents of the above have not been verified by the Exchange and the Exchange assumes no responsibility for the contents above, including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in the content above. Target return is not necessarily indicative of and does not guarantee actual return. The past performances of Franklin Templeton and Lexington Partners, and Franklin Lexington PE Secondaries Fund are not necessarily indicative of and no guarantee of the future performance of Franklin Lexington PE Secondaries Fund is made. This is not an advertisement making an offer or calling attention to an offer or intended offer.

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