Franklin Templeton and Lexington Partners Launch First Luxembourg-Domiciled Private Equity Secondaries Fund with over $875 Million in Assets Under Management from International Investors

Franklin Templeton and Lexington Partners Launch First Luxembourg-Domiciled Private Equity Secondaries Fundwith over $875 Million in Assets Under Management from International Investors

London and Luxembourg, 30 April 2025: Following regulatory approval last November, Franklin Templeton¹ is delighted to announce the launch of the Franklin Lexington PE Secondaries Fund (FLEX-I)², a sub-fund of the Luxembourg-domiciled Franklin Lexington Private Markets Fund SICAV SA range, which comes to market with over US $875 million in assets under management from a diversified investor base internationally across APAC, EMEA, Canada and Latin America. Co-managed by Franklin Templeton and Lexington Partners³, a pioneer in the development of institutional secondary markets, the new fund represents the firm’s first evergreen fund for the wealth channel internationally. It has been notified for distribution to professionals in the European Economic Area (“EEA”), the United Kingdom, Switzerland, Canada, and some Middle Eastern, Latin American and APAC jurisdictions.

George Szemere, Head of Alternatives EMEA Wealth Management commented: “We are excited to partner with Lexington on this product which represents a key addition to our Alternatives by Franklin Templeton product range. Our goal is to unlock access to high-quality private equity for international investors in the wealth channel. Following a similar launch in the US which has generated over US $1.2 billion⁴ in US investor subscriptions, FLEX-I now comes to market with over US $875 million in assets under management from international investors, testament to Franklin Templeton’s distribution platform and global reach. This exciting launch marks a pivotal moment for our private wealth expansion internationally and reinforces our commitment to becoming a leading player in the alternatives wealth channel."

Designed for wealth channel clients seeking long-term growth opportunities, FLEX-I offers access to an asset class that until recently was primarily available to institutional investors. The Fund’s investment objective is to seek long-term capital appreciation by investing in a diversified portfolio of private equity investments acquired through secondary transactions and co-investments in new private equity transactions alongside leading sponsors. In addition, FLEX-I will have the flexibility to invest in Private Assets across asset types, including, but not limited to, buyout, growth, venture, credit, mezzanine, infrastructure, energy and other real assets.

FLEX-I comes to market at a time when original investors in private funds and assets are seeking liquidity because of a slowdown in distributions from the asset class. The secondary PE market has grown significantly and is projected to exceed US $500 billion⁵ over the next five years. Investors in secondary funds seek private equity and alternatives exposure with the potential benefits of broad diversification, potential for earlier cash returns, reduced investment risk and mitigation of primary J-curve.

Wil Warren, Partner and President of Lexington, a specialist investment manager of Franklin Templeton said: “The secondary market remains undercapitalised despite a significant supply of deal flow, creating opportunities for investors to acquire attractive exposure. FLEX-I will complement our traditional drawdown funds, which currently represent $72.4 billion⁶ in assets, and reflects our commitment to delivering strong, long-term risk-adjusted returns. By leveraging our experience and leadership in private markets, FLEX-I will play a pivotal role in our strategy to expand our capital base and enhance value creation for our investors.”

Jake Williams, Global Co-Head of Alternatives Wealth Management Product added: “This launch is testament to the growing demand we are seeing from wealth investors wanting to access alternatives via evergreen structures. The new Fund aims to offer a balance between providing liquidity to investors and maintaining the ability to invest in longer-term potentially higher returning private equity opportunities. We look forward to building on this success as we cater for this growing demand.”

Lexington is one of the world’s largest and most successful managers of secondary private equity and co-investment funds. The firm helped pioneer the development of the institutional secondary market over 31 years ago and created one of the first independent, discretionary co-investment programs 27 years ago. Lexington's 26 partners are among the most experienced and highly-regarded in the secondary market today, averaging 18 years together at Lexington.

The EMEA Alternatives Wealth Management team is part of Franklin Templeton’s growing and dedicated alternatives platform that extends beyond traditional investment offerings. The firm’s specialist investment managers, each with deep domain expertise, provide a diverse range of alternative asset capabilities including private equity secondaries and co-investment funds (Lexington), private credit (Benefit Street Partners and Alcentra), real estate (Clarion Partners), as well as hedged strategies, venture capital and digital assets. Franklin Templeton manages over US $252 billion⁷ in alternative assets as of 31 March 2025.

For more information please visit: https://www.franklintempleton.lu/our-funds/capabilities/alternatives

 

-ENDS-

Contacts:

Saira Khan Senior Corporate Communications Manager Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7073 8644 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8538 Email: [email protected]

 

Notes to Editors:

This is a marketing communication. Please refer to the prospectus or information document of the AIF and, where available, to the KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.53 trillion in assets under management as of 31 March 2025. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.

2. Franklin Lexington PE Secondaries Fund is a sub-fund of the Luxembourg-domiciled Franklin Lexington Private Markets Fund SICAV SA. Franklin Lexington Private Markets Fund SICAV SA (the “Fund”) is an investment company with variable capital, Part II UCI, incorporated as a public limited liability company with multiple compartments.  The Fund is authorised and supervised by the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF). Information has been prepared from sources believed reliable. It is not guaranteed in any way by any Franklin Resources, Inc. company or affiliate (together 'Franklin Templeton').
   
   Franklin Lexington PE Secondaries has been notified for marketing to professionals in multiple EU Member States under the AIFM Directive.
   
   Investors should consult with their financial advisor or intermediary to discuss potential eligibility and suitability to invest in the Fund and the Sub-Fund.  The Fund and the Sub-Fund may also be offered directly or indirectly to professional or other sophisticated investors that meet the relevant eligibility criteria for investing in the Fund and the Sub-Fund.

3. Lexington Partners is one of the world’s largest and most successful managers of secondary private equity and co-investment funds. Lexington helped pioneer the development of the institutional secondary market over 31 years ago and created one of the first independent, discretionary co-investment programs 27 years ago. Lexington has total capital in excess of $76 billion and has acquired over 5,500 interests through more than 1,300 transactions. Lexington’s global team is strategically located in major centers for private equity and alternative asset investing across North America, Europe, Asia, and Latin America. Lexington is the global secondary private equity and co-investments specialist investment manager of Franklin Templeton. Additional information can be found at www.lexingtonpartners.com.

4. Source: Franklin Templeton as of 31 March 2025.

5. Lexington Partners estimates as of April 2025.

6. Source: Lexington Partners. Data as of 31 December 2024.

7. Source: Franklin Templeton. Data as of 31 March 2025.

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

Please consult your financial advisor before deciding to invest.

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