Franklin Templeton raises $1.5bn for inaugural CFO
US investment firm Franklin Templeton has raised $1.5bn (£1.1bn) from global investors for its first collateralised fund obligation (CFO).
Franklin Templeton Structured Solutions 2026 will provide investors with exposure to two of the manager’s flagship private markets strategies, which span private equity secondaries and continuation vehicles.
The strategies are managed by two of the firm’s subsidiaries: Lexington Partners, which focuses on secondary private equity and co-investments, and Benefit Street Partners, Franklin Templeton’s alternative credit specialist.
Read more: Franklin Templeton targets wealth investors with Euroclear tie-up
Meanwhile, the firm’s solutions platform, Franklin Templeton Investment Solutions, will serve as collateral manager for the CFO, bringing experience in portfolio construction, liquidity and risk management across public and private markets.
Read more: Franklin Templeton launches private markets model portfolios
“We are seeing growing demand from clients for access to differentiated private markets strategies in structures that are efficient and scalable,” commented George Stephan, global chief operating officer in Franklin Templeton’s wealth management private markets division. “This inaugural CFO is a direct response to that demand.”
Jake Williams, co-head of the firm’s private markets product division added: “This transaction demonstrates how structured solutions can bring together different private markets capabilities to address the evolving needs of institutional portfolios.”
Franklin Templeton currently has $295bn in alternative assets under management.
Evercore served as structuring advisor and placement agent for the CFO. Simpson Thacher & Bartlett LLP served as issuer counsel.
