Franklin Templeton: Launching a Landmark Secondary PE Fund for U.S. Investors

Franklin Templeton has announced the launch of its first open-end fund, the Franklin Lexington Private Markets Fund (FLEX), which is designed to provide access to secondary private equity investments. Co-advised with Lexington Partners, the fund aims to offer wealth channel clients a simplified path to a diversified portfolio of private equity investments through secondary transactions and co-investments. Initially, the fund boasts $904.5 million in assets under management through collaborations with two prominent U.S. wealth management firms. This move marks an effort to democratize access to an asset class traditionally reserved for institutional investors. The aim is to address shifts in the market such as stalled IPO activity and to exploit opportunities in the secondary market, which has experienced volumes exceeding $100 billion over four consecutive years. With features including lower minimum investments and quarterly liquidity, FLEX seeks to adapt institutional investment advantages for individual investors. Franklin Templeton and Lexington Partners have significant experience in alternative investments, with Franklin Templeton managing $1.68 trillion in total assets as of December 31, 2024. This new fund is part of their strategic initiative to broaden investment access and enhance long-term capital growth potential.