Asset manager Franklin Templeton has announced the successful closing of Franklin Templeton Structured Solutions 2026, L.P., its first Collateralized Fund Obligation (CFO), raising $1.5 billion from investors worldwide.
CFOs are a structured form of financing for diversified private equity portfolios, establishing multiple debt tranches with priority over equity holders. According to the firm, the product is designed to provide investors with diversified, capital-efficient exposure to Franklin Templeton’s primary private markets strategies. This includes private equity secondaries and continuation vehicles managed by Lexington Partners, as well as U.S. middle-market direct lending managed by Benefit Street Partners (BSP)—Franklin Templeton’s alternative credit specialist—across multiple vintages and a broad array of underlying portfolio companies.
Growing Demand for Private Market Diversification
“We are seeing growing client demand for access to differentiated private market strategies through efficient, scalable structures,” said George Stephan, Global Chief Operating Officer, Wealth Management Private Markets at Franklin Templeton. “This first CFO responds directly to that demand by combining the specialized expertise of our private market managers into an offering that reflects the full scope of capabilities Franklin Templeton can deliver.”
“This transaction demonstrates how structured solutions can bring together distinct private market capabilities to meet the evolving needs of institutional portfolios,” noted Jake Williams, Co-Head, Private Markets Product at Franklin Templeton. “The transaction leverages the breadth of Franklin Templeton’s private markets platform and our ongoing commitment to developing innovative solutions that help clients achieve their objectives.”
The successful closing marks a significant milestone for Franklin Templeton, establishing a new capital-raising channel for its private markets platform and positioning the firm to capitalize on rising demand for structured private market solutions as adoption spreads across a broader range of investors, including registered investment advisors (RIAs), family offices, insurance companies, and wealth distributors.
Franklin Templeton currently manages $295 billion in alternative assets under management (as of July 31, 2026) and offers a diversified private markets platform that includes Lexington Partners (secondaries and co-investments), Clarion Partners (private real estate), Benefit Street Partners (private credit), and Franklin Ventures (hedge strategies and digital asset capabilities).
