Franklin Templeton co-managed fund hits $1.8bn AUM

Launched off the back of a partnership between Franklin Templeton Australia and Lexington Partners in May, the firms’ co-managed fund has now surpassed $1.8 billion in assets under management (AUM).

Earlier this year, asset manager Franklin Templeton announced a partnership with secondary and co-investment fund provider Lexington Partners to launch the Franklin Lexington Private Equity Secondaries Fund.

The fund is an Australian-registered managed investment scheme that invests in an AUD-hedged share class of the Franklin Lexington PE Secondaries Fund, a sub-fund of the Luxembourg-domiciled Franklin Lexington Private Markets Fund SICAV SA range.

According to Franklin Templeton, the fund is designed to provide investors with an opportunity to invest in an underlying diversified portfolio of private equity investments that are acquired through secondary transactions and co-investments within an accessible structure.

After just a few months of operation, the underlying fund for the Franklin Lexington Private Equity Secondaries Fund has now hit $1.8 billion in AUM.

Franklin Templeton said: “This milestone reflects strong demand and appetite for private equity secondaries in an evergreen structure from a broad range of investors across Australia, APAC, EMEA, Canada and Latin America regions.”

Speaking on the announcement, Felicity Walsh, managing director of Franklin Templeton Australia and New Zealand, said the firm is pleased with the strong response from the market as it works to move alternatives out of the domain of strictly institutional and expanding accessibility to a broader range of investors.

“This is a strong endorsement of Lexington’s capabilities in the secondaries space and our ability to deliver long-term growth opportunities to our clients in the wealth channel,” Walsh added.

“This partnership allows us to leverage Franklin Templeton’s extensive wealth adviser network alongside Lexington’s institutional strength, ensuring that Australian investors benefit from more sophisticated and accessible strategies. Our goal is to continue expanding these capabilities and delivering alternative investment solutions designed to meet the evolving needs of investors in the years ahead.”

Noting Lexington’s positive long-term track record in the secondaries space, Walsh said the partnership between the two firms is built on a deep cultural alignment and proven capabilities that match one another.

“The acquisition of Lexington Partners was a strategic step in this journey, significantly enhancing Franklin Templeton’s alternative investment offerings,” she said.

“With the addition of world-class private equity secondaries and co-investment expertise to our $400 billion global alternatives portfolio, we can now provide broader market access, more flexible structures and greater liquidity.”