Democratizing Private Equity Secondaries: A Trio’s Bold Move to Transform Access

The partnership between ADDX, Franklin Templeton, and Lexington Partners in 2025 represents a landmark shift in the alternative investments landscape. By pooling their expertise—digital innovation, global asset management, and secondary market mastery—the trio has created a pathway for individual accredited investors to access private equity secondaries, a historically institutional-dominated asset class. This move not only addresses a growing demand for liquidity and diversification but also underscores the evolving role of private markets in wealth management.

A Trio’s Vision: Breaking Down Barriers

At its core, the collaboration aims to dismantle the high entry barriers and opacity associated with traditional private equity investments. Franklin Templeton’s $1.53 trillion asset base and global distribution network, combined with Lexington Partners’ $76 billion in secondary market expertise and ADDX’s digital platform, creates a formidable ecosystem. The result? The Franklin Lexington Private Markets Fund (FLEX) and its Luxembourg-domiciled sub-fund, the Franklin Lexington PE Secondaries Fund (FLEX-I), which launched with $904.5 million and $875 million in assets under management, respectively.

The Products: Democratizing Access Through Design

The funds’ structure is engineered to attract retail investors. FLEX offers monthly subscriptions, quarterly liquidity windows, and a minimum investment as low as $5,000—radically lower than the typical multimillion-dollar thresholds for institutional funds. The tax-efficient 1099 reporting for U.S. investors further simplifies compliance. Meanwhile, FLEX-I’s “evergreen” strategy allows continuous investment and liquidity, sidestepping the lock-up periods of traditional private equity.

Market Momentum and Strategic Rationale

The secondary market has grown exponentially, exceeding $100 billion annually in transaction volume since 2021, driven by institutional liquidity needs and a slowdown in IPO activity. Secondaries offer a critical advantage over primary funds: reduced “J-curve” risk, as investors acquire stakes in mature portfolios with clearer valuation trajectories. For Asian investors, this aligns with a rising appetite for global alternatives—FLEX-I’s initial capital came largely from APAC, EMEA, and Latin America.

Franklin’s stock trajectory reflects investor confidence in its expansion into alternatives, with a 15% rise in AUM since 2020.

Risks and Considerations

Despite the benefits, private equity secondaries are not without risks. Valuation challenges and liquidity constraints in stressed markets remain concerns. However, Lexington’s 30-year track record and Franklin’s risk management infrastructure mitigate these issues. As Wil Warren of Lexington noted, the funds aim to “balance opportunity with prudent exposure,” leveraging their combined expertise to navigate market volatility.

The Bigger Picture: A New Era for Retail Investors

This partnership signals a paradigm shift. By bringing secondary markets to individual investors, ADDX, Franklin Templeton, and Lexington are democratizing access to an asset class that has long been the preserve of institutions. The $875 million raised by FLEX-I in its first months demonstrates strong demand, particularly in Asia—a region where wealth management clients are increasingly seeking diversified, liquid alternatives.

Conclusion: A Strategic Play with Broad Implications

The 2025 collaboration stands as a strategic response to two key trends: the democratization of private markets and the Asia-centric growth of wealth management. With Franklin Templeton’s global reach, Lexington’s secondary expertise, and ADDX’s digital infrastructure, the funds are well-positioned to capitalize on a $100 billion+ market. The data speaks volumes: FLEX’s $904.5 million AUM at launch, coupled with FLEX-I’s cross-border traction, highlights investor confidence in these vehicles.

For individual investors, this marks a turning point. By lowering barriers to entry and offering quarterly liquidity—a rarity in private markets—the partnership opens doors to a historically exclusive asset class. As the secondary market continues to grow, such initiatives will play a pivotal role in reshaping how retail investors build resilient, diversified portfolios. The era of democratized private equity is here, and this trio has set the blueprint.