Franklin Templeton launches $904.5m secondary PE fund

Franklin Templeton has introduced its first open-end fund focused on secondary private equity.

The fund launched with $904.5m in assets under management through partnerships with two U.S. wealth management firms. The Franklin Lexington Private Markets Fund (FLEX)  is co-advised with Lexington Partners, a leader in secondary and co-investment markets. FLEX simplifies access to private equity, offering a diversified portfolio of assets from secondary transactions and co-investments.

The fund targets wealth channel clients and features lower investment minimums, quarterly liquidity, and 1099 tax reporting. Moreover, it provides individual investors easier access to private equity compared to traditional institutional funds.

Lexington Partners described FLEX as a complement to its $72.4bn institutional drawdown funds. Wil Warren, Lexington’s President, noted the fund’s focus on strong, risk-adjusted returns. Secondary market volumes surpassed $100bn in 2024, driven by liquidity needs and stalled IPO markets. FLEX also offers diversification across sponsors, vintages, geographies, and industries.

Franklin Templeton manages $250bn in alternative assets, representing 15% of its $1.68tn total AUM. The firm leverages its expertise in private credit, real estate, and growth equity to support investors in private markets.

Source: Markets Media

Can’t stop reading? Read more