The Goldilocks Zone: Finding Value in Venture & Growth Secondaries | Ep. 42

In this episode of Alternative Allocations, host Tony Davidow sits down with Matt Hodan, Partner at Lexington Partners, to explore the evolving opportunity set in venture and growth private equity. They discuss the secular trend of companies staying private longer and what that means for investors seeking exposure to some of tomorrow's most innovative companies. Matt introduces Lexington's "Goldilocks zone" of value creation, explains how secondary investing in venture and growth can offer built-in diversification while limiting both early-stage risk and late-stage valuation risk, and shares the importance of being embedded in the Silicon Valley ecosystem for sourcing opportunities. The conversation closes with a look ahead to 2027 and the ground-floor opportunity that AI transformation presents across the venture and growth landscape.

Matt Hodan is a Partner on the Secondary team at Lexington and co-leads the Firm's Venture & Growth activities. Based in Menlo Park, Matt helps oversee the strategic direction, investment activities and ongoing development of Lexington's Venture & Growth strategy. Matt primarily focuses on technology and innovation investing across secondary investments, co-investments, direct investments and primary fund commitments. Matt is Partner and co-leader of Venture and Growth activities and member of the Secondary Investment Committee. Matt joined Lexington as an Associate in 2011. Prior to joining Lexington, Matt was a Co-Founder at Data Marketplace, a Y-Combinator-backed digital marketplace for data, an Associate in private equity at Genstar Capital and an Analyst in investment banking at J.P. Morgan. Matt graduated from the Indiana University, Kelley School of Business with a BS in Finance.

Resources:

Matt Hodan | LinkedInFranklin Templeton Private MarketsTony Davidow, CIMA® | LinkedIn