04.15.24
Franklin Templeton Turns Toward Private Investing as Mutual Fund Business Shrinks
Franklin Templeton has quietly become a major force in private markets, shifting away from its traditional mutual fund business. In the past five years, Franklin acquired private-credit manager Benefit Street Partners; private real-estate investment firm Clarion Partners, as part of a deal for asset manager Legg Mason; Lexington Partners, a major player in the business of buying stakes in private-equity funds; and European credit manager Alcentra. Alternatives accounted for 18% of assets and 25% of management fees at Franklin as of the end of last year. The shift comes as Franklin Resources is grappling with a steady stream of outflows from its legacy mutual fund business. The funds, which underperformed the broader market during the recovery from the 2008-09 financial crisis, have been losing favor with investors, who are gravitating instead toward cheaper passive products.
Read the full article on The Wall Street Journal