Franklin Templeton, in partnership with Lexington Partners, has launched a Luxembourg-domiciled private equity secondaries fund with $875m in assets under management.

The Franklin Lexington PE Secondaries Fund (Flex-I) is aimed at international wealth investors and marks the firm’s first evergreen vehicle for this investor channel outside the US.

The launch follows regulatory approval in November 2024 and comes on the heels of a US-focused version of the strategy, which has already raised over $1.2bn. Flex-I will allocate capital to secondaries and co-investments across a range of private asset classes, including buyout, venture, growth, credit, infrastructure, energy, and other real assets.

“This exciting launch marks a pivotal moment for our private wealth expansion internationally and reinforces our commitment to becoming a leading player in the alternatives wealth channel,” said George Szemere, head of alternatives EMEA wealth management at Franklin Templeton.

The strategy is designed to capitalise on increasing supply in the secondaries market, which remains undercapitalised despite rapid growth. “The secondary market remains undercapitalised despite a significant supply of deal flow, creating opportunities for investors to acquire attractive exposure,” said Wil Warren, partner and president of Lexington.

Franklin Templeton currently manages over $252bn in alternative assets as of 31 March 2025.

Source: Delano