US asset manager Franklin Templeton and its alternative investment unit Lexington Partners have launched a private equity secondaries fund, raising an initial US$875 million from institutional investors across the world.
The Franklin Lexington PE Secondaries Fund gives investors access to the secondary private equity market, estimated to surpass $500 billion over the next five years, and attracted institutions from Asia Pacific, Europe, the Middle East, Africa, Canada, and Latin America, Franklin Templeton says in a statement on April 30.
It says the Luxembourg-domiciled fund will invest in a diversified portfolio acquired through secondary transactions and co-investments in new private equity deals.
“Investors in secondary funds seek private equity and alternatives exposure with the potential benefits of broad diversification, potential for earlier cash returns, reduced investment risk and mitigation of primary J-curve,” according to the company. In private equity, J-curve refers to a trend where fund returns may be negative in the initial years before turning positive and increasing over time as investments mature.
California-based Franklin Templeton had around $1.53 trillion of assets as of March 2025.
