Franklin Templeton’s Secondaries Strategy Hits $3.5B AUM in First Year

Event summary

  • Franklin Templeton’s Franklin Lexington PE secondaries strategy reached $3.5B AUM within a year of launch.
  • Strategy initially launched in December 2024 for U.S. investors, expanded globally in March 2025.
  • Sub-advised by Lexington Partners, a pioneer in private equity secondaries.
  • Part of Franklin Templeton’s broader alternatives platform, which manages $275B in assets.

The big picture

Franklin Templeton’s milestone underscores the growing appetite for institutional-quality private markets solutions among wealth clients. The strategy’s rapid scaling reflects broader industry trends toward democratizing access to private equity, particularly through secondaries. With alternatives representing 16% of Franklin Templeton’s $1.7T AUM, the strategy’s success validates the firm’s push into niche private markets segments.

What we're watching

Market Demand
Whether the rapid AUM growth signals sustained demand for secondary private equity solutions among global wealth clients.
Competitive Positioning
How Franklin Templeton’s partnership with Lexington Partners differentiates it in the crowded secondaries market.
Regulatory Scrutiny
The pace at which regulatory attention on private markets could impact the strategy’s expansion.