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Franklin Resources to Expand Alternatives Platform With Apera Acquisition
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Key Takeaways
Franklin agreed to acquire a majority interest in Apera, a pan-European private credit firm.
The deal lifts BEN's global alternative credit AUM to $87B and total alternatives AUM to $260B.
Apera enhances BEN's European private credit reach and supports its global alternatives strategy.
Franklin Resources, Inc. (BEN - Free Report) announced its latest move in expanding its alternative asset management capabilities with an agreement to acquire a majority interest in Apera Asset Management (Apera), a pan-European private credit firm with over €5 billion in assets under management (AUM).
This impending acquisition will reinforce BEN’s strategic push into private credit, broadening its direct lending reach within Europe’s growing lower middle market. The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals.
Details of BEN’s Strategic Expansion in Private Credit
With the completion of this acquisition, BEN’s global alternative credit AUM will rise to $87 billion, while its total pro-forma asset AUM will grow to approximately $260 billion as of April 30, 2025, reinforcing its leadership in diversified alternative investment strategies. The acquisition will further enhance BEN’s private credit capabilities, strengthening its global reach beyond Benefit Street Partners in the United States and Alcentra in Europe while diversifying its geographic presence within the private credit asset class.
Jenny Johnson, CEO of Franklin Templeton, stated that “The acquisition of Apera reflects our continued commitment to building a world-class global alternatives platform,”. Johnson further added, “We are pleased to welcome Apera’s outstanding team and believe our combined capabilities will deliver even greater value to clients globally."
Apera’s expertise in European private credit will add a new dimension to BEN’s investment strategies, allowing for greater diversification and access to attractive risk-adjusted returns.
Prior Efforts to Grow Inorganically
In the past few years, Franklin has grown through acquisitions and partnerships, thereby, enhancing its foothold. In October 2024, BEN announced a strategic minority investment in Envestnet, unifying investment management technologies to enhance efficiency and reduce long-term capital expenditures. The company also teamed up with Japan's SBI Holdings to focus on ETFs and new asset types, like digital assets, appealing to younger investors in July 2024.
In January 2024, it acquired Putnam Investments, a global asset management firm, from Great-West Lifeco. Franklin’s accelerated growth in the retirement space was achieved by increasing its defined contribution AUM to more than $100 billion. Earlier, in 2022, it completed the acquisition of Lexington Partners, enhancing its presence in secondary private equity and co-investments.
Apart from these, several acquisitions of the past led to enhanced presence in the separately managed account space and bolstered its investment capabilities in private debt, real estate, hedge funds, and private equity. Such efforts will help the company in improving and expanding its alternative investments and multi-asset solutions platforms.
BEN’s Price Performance & Zacks Rank
Over the past six months, BEN shares have gained 1% against the industry’s 14.7% decline.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
Last month, UBS Group AG (UBS - Free Report) entered a strategic partnership with General Atlantic, a US-based investment firm, to focus on private credit opportunities.
The collaboration between UBS and General Atlantic aims to expand the access of investing clients and borrowers to a broader range of direct lending and other credit products. By combining UBS’s advisory and investment banking origination capabilities with General Atlantic’s extensive global network, the partnership will create compelling private credit solutions.
Similarly, in December 2024, BlackRock Inc. (BLK - Free Report) announced a definitive agreement to acquire HPS Investment Partners for $12 billion in an all-equity transaction. The move signals the company’s deeper foray into the private credit market, which is rapidly emerging as one of the most lucrative sectors in global finance.
Under the agreement, BLK will pay $12 billion entirely in equity, issuing 12.1 million SubCo Units through a wholly-owned subsidiary. These units are exchangeable on a one-to-one basis for BlackRock common stock and carry equivalent dividend rights.
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Franklin Resources to Expand Alternatives Platform With Apera Acquisition
Key Takeaways
Franklin Resources, Inc. (BEN - Free Report) announced its latest move in expanding its alternative asset management capabilities with an agreement to acquire a majority interest in Apera Asset Management (Apera), a pan-European private credit firm with over €5 billion in assets under management (AUM).
This impending acquisition will reinforce BEN’s strategic push into private credit, broadening its direct lending reach within Europe’s growing lower middle market. The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals.
Details of BEN’s Strategic Expansion in Private Credit
With the completion of this acquisition, BEN’s global alternative credit AUM will rise to $87 billion, while its total pro-forma asset AUM will grow to approximately $260 billion as of April 30, 2025, reinforcing its leadership in diversified alternative investment strategies. The acquisition will further enhance BEN’s private credit capabilities, strengthening its global reach beyond Benefit Street Partners in the United States and Alcentra in Europe while diversifying its geographic presence within the private credit asset class.
Jenny Johnson, CEO of Franklin Templeton, stated that “The acquisition of Apera reflects our continued commitment to building a world-class global alternatives platform,”. Johnson further added, “We are pleased to welcome Apera’s outstanding team and believe our combined capabilities will deliver even greater value to clients globally."
Apera’s expertise in European private credit will add a new dimension to BEN’s investment strategies, allowing for greater diversification and access to attractive risk-adjusted returns.
Prior Efforts to Grow Inorganically
In the past few years, Franklin has grown through acquisitions and partnerships, thereby, enhancing its foothold. In October 2024, BEN announced a strategic minority investment in Envestnet, unifying investment management technologies to enhance efficiency and reduce long-term capital expenditures. The company also teamed up with Japan's SBI Holdings to focus on ETFs and new asset types, like digital assets, appealing to younger investors in July 2024.
In January 2024, it acquired Putnam Investments, a global asset management firm, from Great-West Lifeco. Franklin’s accelerated growth in the retirement space was achieved by increasing its defined contribution AUM to more than $100 billion. Earlier, in 2022, it completed the acquisition of Lexington Partners, enhancing its presence in secondary private equity and co-investments.
Apart from these, several acquisitions of the past led to enhanced presence in the separately managed account space and bolstered its investment capabilities in private debt, real estate, hedge funds, and private equity. Such efforts will help the company in improving and expanding its alternative investments and multi-asset solutions platforms.
BEN’s Price Performance & Zacks Rank
Over the past six months, BEN shares have gained 1% against the industry’s 14.7% decline.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps Taken by Other Finance Firms
Last month, UBS Group AG (UBS - Free Report) entered a strategic partnership with General Atlantic, a US-based investment firm, to focus on private credit opportunities.
The collaboration between UBS and General Atlantic aims to expand the access of investing clients and borrowers to a broader range of direct lending and other credit products. By combining UBS’s advisory and investment banking origination capabilities with General Atlantic’s extensive global network, the partnership will create compelling private credit solutions.
Similarly, in December 2024, BlackRock Inc. (BLK - Free Report) announced a definitive agreement to acquire HPS Investment Partners for $12 billion in an all-equity transaction. The move signals the company’s deeper foray into the private credit market, which is rapidly emerging as one of the most lucrative sectors in global finance.
Under the agreement, BLK will pay $12 billion entirely in equity, issuing 12.1 million SubCo Units through a wholly-owned subsidiary. These units are exchangeable on a one-to-one basis for BlackRock common stock and carry equivalent dividend rights.