Franklin Templeton raises $1.5bn for first collateralized fund obligation
The vehicle gives investors exposure to Franklin Templeton’s private markets strategies.
Franklin Templeton today closed its first collateralized fund obligation, raising about $1.5bn for Franklin Templeton Structured Solutions 2026, L.P., a closed offering backed by exposure to the manager’s private markets platform. Using a collateralized fund obligation wrapper lets Franklin Templeton turn those private-markets exposures into tranched fund financing rather than a plain commingled vehicle, because a collateralized fund obligation is a securitized financing backed by fund interests, not a standard open-ended fund structure.
The strategies include private equity secondaries and continuation vehicles managed by Lexington Partners, alongside US middle-market direct lending managed by Benefit Street Partners.
Franklin Templeton Investment Solutions will act as collateral manager for the transaction.
Sources: investors.franklintempleton.com
