Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Merger or Acquisition (November 2021)
9 slides from Franklin Resources's merger presentation, Nov 1, 2021
Slide 1: Franklin Templeton Announces the Acquisition of Lexington Partners
Franklin Templeton Announces the Acquisition of Lexington Partners November 1, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this presentation, words or phrases generally written in the future tense and/or pre
Slide 3: Transaction Summary and Rationale
Transaction Summary and Rationale 1 Strategic Complement to Franklin Templeton’s Alternative Asset Business • Provides strong Private Equity based strategies alongside Clarion Partners (Real Estate), Benefit Street Partners (Private Credit) and K2 Advisors (Hedge Funds) • Pro forma alternative AUM a
Slide 4: Lexington – A Secondary and Co-Investment Market Leader
Lexington – A Secondary and Co-Investment Market Leader • Founded in 1994, Lexington is one of the world’s largest independent managers of secondary private equity and co-investment funds • 139 employees across 8 global offices GLOBAL • 18 partners averaging 18 years together at Lexington PLATFORM &
Slide 5: Lexington – Consistent Growth Across Vintages
Lexington – Consistent Growth Across Vintages • Lexington has expanded its investor base and increased capital raises with each successive fundraising • Potential to expand this further into additional investor segments over time with Franklin Templeton’s distribution reach • Fund offerings could al
Slide 6: Secondary PE and Co-Invest are Highly Attractive Strategies
Secondary PE and Co-Invest are Highly Attractive Strategies • The secondary private equity market is experiencing strong growth and is directly linked to the growth in overall private equity Growth of Global PE Market (1) Growth of PE Secondary Market (1) Outlook for Secondary Market Growth Aggregat
Slide 7: Lexington Strengthens FT's Alternative Asset Business
Lexington Strengthens FT’s Alternative Asset Business • With the addition of Lexington, Franklin Templeton will offer strong investment capabilities and brand recognition in a wide range of key alternative asset categories As of 9/30/21 As of 9/30/22 $650bn $524bn Specialist Investment Private Debt
Slide 8: Franklin Templeton's Commitment to Alternatives
Franklin Templeton’s Commitment to Alternatives • Alternatives represent an increasing share of the asset management industry and a key strategic priority for Franklin Templeton • Franklin Templeton has created an alternatives platform through thoughtful acquisitions combined with attractive organic
Slide 9: Summary Financial Impact
Summary Financial Impact • Purchase Price: Franklin Templeton to pay current shareholders $1 billion in cash at closing and an additional $750 million in cash over the next three years • Post-Transaction Ownership: Partners and employees will be granted 25% interest in Lexington as Key Financial Ter
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