Sydney, 8 May 2025: Franklin Templeton Australia1 is delighted to announce the launch of the Franklin Lexington Private Equity Secondaries Fund, an Australian registered managed investment scheme that will invest into an AUD-hedged share class 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.
The Franklin Lexington Private Equity Secondaries Fund provides an opportunity to invest in a diversified portfolio of private equity investments acquired through secondary transactions and co-investments within a semi-liquid accessible structure.
The underlying fund, FLEX-I, 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 Lexington Partners’ first evergreen fund for the wealth channel internationally.
Felicity Walsh, Managing Director, Franklin Templeton Australia and New Zealand said, “We are thrilled to expand Franklin Templeton’s private market capabilities for our wealth clients and launch our second alternatives fund for Australian investors. There is growing demand for access to alternative strategies that offer lower minimums and improved liquidity. Australian investors are increasingly recognising the appeal of secondary private equity investments, not only for diversification and liquidity, but also as a key entry point into their expanding private equity exposure.”
She added, “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.”
Designed for wealth channel clients seeking long-term growth opportunities, the Franklin Lexington Private Equity Secondaries Fund 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 FLEX-I, 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.
The Franklin Lexington Private Equity Secondaries Fund 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 billion4 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.
“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,” said John Lee, Partner at Lexington. “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.”
Lexington Partners 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.
Franklin Templeton’s alternatives 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 billion5 in alternative assets as of 31 March 2025.
For more information please visit: https://www.franklintempleton.com.au/our-products/capabilities/alternatives
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About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization 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 specialization 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 A$2.5 trillion in assets under management as of March 31, 2025. For more information, please visit www.franklintempleton.com.au and follow us on LinkedIn, Twitter and Facebook.
About Lexington Partners Lexington Partners
L.P (Lexington Partners) 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 has total capital in excess of US$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 lexingtonpartners.com.
Notes to Editors:
1. Franklin Templeton Australia Limited (ABN 76 004 835 849, AFSL 240827) (FTAL) is a part of Franklin Resources, Inc. and the Responsible Entity and issuer of the Franklin Lexington Private Equity Secondaries Fund.
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 “SICAV”) is an investment company with variable capital, Part II UCI, incorporated as a public limited liability company with multiple compartments. The SICAV 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').
3. Lexington Partners L.P., indirectly wholly owns Lexington Advisors LLC, a delegated investment manager of Franklin Lexington Private Markets Fund SICAV SA - Franklin Lexington PE Secondaries Fund.
4. Lexington Partners estimates as of April 2025.
5. 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.
Franklin Templeton Australia Limited (ABN 76 004 835 849, AFSL 240827) (FTAL) is the Responsible Entity and issuer of the Franklin Lexington Private Equity Secondaries Fund. Neither FTAL, nor any other company within the Franklin Templeton group guarantees the performance of any Fund, nor do they provide any guarantee in respect of the repayment of your capital.
Before making an investment decision you should read the Product Disclosure Statement (PDS) and associated reference documents for the Fund carefully and you need to consider, with the assistance of a financial advisor, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Further information relating to this Fund and the relevant PDS and associated disclosure documents and Target Market Determination can be found on www.franklintempleton.com.au or by calling 1800 673 776. Please consult your financial advisor before deciding to invest.
Prospective investors must be aware of the potential limitations in connection with their ability to redeem Units in the Fund. Neither the Responsible Entity nor the Investment Manager provide any guarantees concerning the liquidity of the Fund, the ability of an investor to redeem their Units, the value of their Units at redemption or the level of sell spread that may apply to a redemption.
The Responsible Entity considers the risk level of the Fund to be high. An investment in the Fund should not constitute a substantial portion of an investment portfolio and may not be appropriate for all investors. The Fund is designed for investors that have sought professional personal financial advice, have limited need for liquidity and are seeking total returns over the long term through capital 4 appreciation and who are willing to accept fluctuations (sometimes significant) in returns in the short term. The Fund is not suitable for investors who need access to their investment in the short term. Investors should be aware of the limitations on their ability to withdraw from the Fund.
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