San Mateo, Calif.-based Franklin Resources Inc. is boosting its alternative asset capabilities with the US$1.75 billion acquisition of private equity firm Lexington Partners, the firm said Monday.
“This acquisition will position us to capitalize on the highly sought after secondary private equity market, an area of growth that complements Franklin Templeton’s existing alternative asset capabilities to meet the growing appetite of our clients for alternative asset management around the globe,” said Franklin Templeton president and CEO Jenny Johnson in a statement.
Lexington has offices around the world and current fee-based assets under management of US$34 billion, according to a release.
Franklin Templeton will pay US$1 billion at close and make additional payments totalling US$750 million over the next three years. The transaction is expected to close in the first half of next year.
Franklin Templeton’s alternative assets under management are expected to be approximately US$200 billion when the transaction closes.