Franklin Templeton pulls in $1.5B for its first collateralised fund obligation
What's the deal? Franklin TempletonDealroom has a profile for this one. Try Dealroom → has raised $1.5 billion from global investors for its first collateralised fund obligation (CFO). The vehicle, Franklin Templeton Structured Solutions 2026, L.P.Dealroom has a profile for this one. Try Dealroom →, gives investors exposure to the firm's flagship private markets strategies, spanning private equity secondaries and continuation vehicles.
Who's involved? The strategies are managed by two subsidiaries: Lexington Partners, which focuses on secondary private equity and co-investments, and Benefit Street PartnersDealroom has a profile for this one. Try Dealroom →, the firm's alternative credit specialist. Franklin Templeton Investment SolutionsDealroom has a profile for this one. Try Dealroom → will act as collateral manager, handling portfolio construction, liquidity, and risk management.
Why now? The firm is responding to rising client appetite for private markets in packaged form. "We are seeing growing demand from clients for access to differentiated private markets strategies in structures that are efficient and scalable," said George Stephan, global chief operating officer in the wealth management private markets division. "This inaugural CFO is a direct response to that demand."
By the numbers. Franklin Templeton currently holds $295 billion in alternative assets under management. EvercoreDealroom has a profile for this one. Try Dealroom → served as structuring advisor and placement agent, while Simpson Thacher & Bartlett LLPDealroom has a profile for this one. Try Dealroom → acted as issuer counsel.
The signal: CFOs, which bundle stakes in private funds into a single structured product, are gaining traction as managers seek to bring institutional strategies to a wider base of investors. "This transaction demonstrates how structured solutions can bring together different private markets capabilities to address the evolving needs of institutional portfolios," said Jake Williams, co-head of the firm's private markets product division.
Read more: Alternative Credit Investor
Image credit: GeorgeTan#1
