Franklin Templeton to Acquire Majority Stake in K2 Advisors

September 20, 2012

On September 19, 2012, Franklin Resources, Inc. (NYSE: BEN), which operates as Franklin Templeton Investments, announced that it had agreed to acquire a majority stake in K2 Advisors LLC, an independent fund of hedge funds manager, for an undisclosed sum.

On September 19, 2012, Franklin Resources, Inc. (NYSE: BEN), which operates as Franklin Templeton Investments, announced that it had agreed to acquire a majority stake in K2 Advisors LLC, an independent fund of hedge funds manager, for an undisclosed sum.  K2 Advisors will use the proceeds of the acquisition to finance the purchase of all of the equity currently held by TA Associates and to retire all of K2’s debt obligations.  The transaction will expand Franklin Templeton’s Alterative Strategies division.  Under the terms of the transaction, the current management of K2 Advisors will retain their interests in the company and will not receive any up-front consideration.  Beginning in 2016, Franklin Templeton will acquire the remainder of K2 Advisors over a multi-year period.  The transaction is expected to close in the fourth quarter of 2012.

K2 Advisors is a Stamford, CT-based fund of hedge funds manager with offices in the U.S., U.K., Japan, Australia and Hong Kong and approximately $9.2 billion in assets under management.  Franklin Templeton provides global and domestic investment solutions and has approximately $731 billion in assets under management.  Franklin Templeton Alternative Strategies, a division of Franklin Resources, encompasses Franklin Templeton Multi-Asset Strategies; the company’s asset management joint ventures in Vietnam and China; Darby Private Equity, providing emerging market private equity, mezzanine finance and infrastructure capabilities; Franklin Templeton Real Asset Advisors; a real estate investment manager, and Pelagos Capital Management, an alternatives specialist in which Franklin Templeton owns a 20% stake.

To read the press release, please click here.


Categories

Hedge Fund M&A, Investment Manager M&A, Transactions