Franklin Templeton lanza fondo de private equity

Franklin Templeton has announced the launch of the Franklin Lexington Private Markets Fund ("FLEX"), its first open-ended fund focused on secondary private equity investments. The fund will be jointly advised with Lexington Partners and is designed for clients in the U.S. wealth management channel seeking long-term growth. According to the press release reported by Funds Society, FLEX provides access to an asset class that, until recently, was primarily available to institutional investors.

The fund enters the market with $904.5 million in assets under management, supported by an initial partnership with two U.S.-based wealth management firms. FLEX offers exposure to a diversified portfolio of private equity assets acquired through secondary transactions, as well as co-investments in new private equity transactions.

Lexington estimates that 2024 was the fourth consecutive year in which secondary market volume exceeded $100 billion. The announcement attributes growth in the segment to a stalled IPO market and slowing distributions, which it says may lead institutions to turn to the secondary market for liquidity. These dynamics are also driving growth in continuation vehicle transactions, in which private equity sponsors use the secondary market to fund deals.

Franklin Templeton argues that secondary private equity offers potential advantages for wealth management investors, including a shorter timeframe to receive distributions and diversification across general partners, investment periods, geographies, and industries. Structurally, FLEX is registered under the Investment Company Act of 1940 as a closed-end public tender offer fund. It features lower investment minimums than private equity funds available to institutional investors, along with 1099 tax reporting, monthly subscriptions, and quarterly liquidity.