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

In this episode of Franklin Templeton's Alternative Allocations podcast, host Tony Davidow speaks with Matt Hodan, a partner on the secondary team at Lexington Partners, about venture and growth private equity and secondary investing in those segments. The discussion covers companies staying private longer, what Lexington calls the "Goldilocks zone" of value creation, and how secondary exposure to venture and growth is positioned as offering built-in diversification while limiting early-stage and late-stage valuation risk. The episode closes with a look ahead to 2027 and AI transformation across the venture and growth landscape.

1. Companies staying private longer is described as a secular trend affecting investors seeking exposure to innovative companies.
2. Lexington's "Goldilocks zone" refers to a stage of value creation between early-stage and late-stage risk.
3. Secondary investing in venture and growth is presented as offering built-in diversification.
4. The guest says being embedded in the Silicon Valley ecosystem matters for sourcing opportunities, and points to AI transformation as a ground-floor opportunity looking toward 2027.