– Franklin Templeton announced the successful closing of Franklin Templeton Structured Solutions 2026, L.P., its first Collateralized Fund Obligation (CFO).
– The CFO raised $1.5 billion from global investors.
– It provides diversified exposure to Franklin Templeton’s flagship private markets strategies, including:
◻️Private equity secondaries and continuation vehicles managed by Lexington Partners.
◻️U.S. middle-market direct lending managed by Benefit Street Partners (BSP).
– The portfolio spans multiple investment vintages and a broad range of underlying portfolio companies.
– The CFO responds to growing client demand for differentiated private markets strategies through efficient and scalable structures.
– Franklin Templeton Investment Solutions (FTIS) will act as the collateral manager, overseeing portfolio construction, liquidity, and risk management.
– The transaction establishes a new capital formation channel for Franklin Templeton’s private markets platform.
– Franklin Templeton had $295 billion in alternative assets under management as of July 31, 2026.
– Its private markets platform includes:
◻️Lexington Partners, private equity secondaries and co-investments
◻️Clarion Partners LLC, private real estate
◻️Benefit Street Partners, private credit
◻️Franklin Ventures, venture investments
◻️Hedged strategies and digital assets
– George Stephan, Global Chief Operating Officer, Wealth Management Private Markets at Franklin Templeton: “We are seeing growing demand from clients for access to differentiated private markets strategies in structures that are efficient and scalable.”
– Jake Williams, Co-Head, Private Markets Product at Franklin Templeton: “This transaction demonstrates how structured solutions can bring together different private markets capabilities to address the evolving needs of institutional portfolios.”
