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Franklin Templeton Announces Closing of Inaugural US$1.5 Billion Collateralized Fund Obligation

  • Franklin Templeton successfully closed its first Collateralized Fund Obligation (CFO), named Franklin Templeton Structured Solutions 2026, L.P.
  • The transaction raised $1.5 billion from global institutional investors.
  • The CFO provides diversified exposure to private equity secondaries managed by Lexington Partners & U.S. middle-market direct lending managed by Benefit Street Partners.
  • Franklin Templeton Investment Solutions (FTIS) serves as the collateral manager for the deal.
  • Evercore acted as the structuring advisor & placement agent, while Simpson Thacher & Bartlett LLP served as issuer counsel.
  • The firm holds $295 billion in alternative assets under management as of July 31, 2026.
  • This milestone establishes a new capital formation channel to address demand from RIAs, family offices, insurance companies & wealth distributors.
  • The offering is now closed & no longer open to new investment.