Franklin Templeton, a global investment firm, has announced the successful closing of Franklin Templeton Structured Solutions 2026, L.P., its first Collateralized Fund Obligation (CFO), which raised $1.5 billion from investors around the world.
According to the company, the CFO is designed to provide investors with diversified and efficient exposure to Franklin Templeton’s flagship private markets strategies, spanning private equity secondaries and continuation vehicles managed by Lexington Partners, a pioneer in private equity secondaries and co-investments, as well as U.S. middle-market direct lending managed by Benefit Street Partners (BSP), Franklin Templeton’s alternative credit specialist, across multiple investment vintages and a broad range of underlying portfolio companies.
Growing appetite for diversification in private markets
“We are seeing growing demand from clients for access to differentiated private markets strategies through efficient and scalable structures,” said George Stephan, Global Chief Operating Officer, Wealth Management Private Markets at Franklin Templeton. “This inaugural CFO is a direct response to that demand, combining the specialized expertise of our private markets managers into an offering that reflects the full breadth of what Franklin Templeton can deliver.”
“This transaction demonstrates how structured solutions can bring together different private markets capabilities to address the evolving needs of institutional portfolios,” said Jake Williams, Co-Head, Private Markets Product at Franklin Templeton. “It draws on the breadth of Franklin Templeton’s private markets platform and our continued focus on developing innovative solutions that help clients achieve their outcomes.”
The successful close marks an important milestone for Franklin Templeton, establishing a new capital formation channel for its private markets platform and positioning the firm to capture growing demand for structured private markets solutions as adoption expands across a broader range of investors, including registered investment advisers (RIAs), family offices, insurance companies and wealth distributors.
Franklin Templeton has $295 billion in alternative assets under management as of July 31, 2026, and offers a diversified private markets platform that includes Lexington Partners, focused on private equity secondaries and co-investments; Clarion Partners, specializing in private real estate; Benefit Street Partners, a leader in private credit; and Franklin Ventures, hedged strategies and digital asset capabilities, providing investors with broad access across alternative asset classes.
