In 2024, Franklin completed its acquisition of Putnam Investments, engulfing more than USD 140 billion in assets under management, which expands its reach in the retirement market, particularly in the defined-contribution space and in the insurance channel through a distribution partnership with Putnam’s previous parent, Great-West Lifeco. The acquisition is Franklin’s 10th in four years and, while considerable in size, is much more digestible than Franklin’s 2021 purchase of Legg Mason, a multiboutique firm that doubled Franklin’s AUM at the time. Other recent acquisitions, including Lexington Partners and Alcentra, augmented the firm’s alternatives capabilities, while O’Shaughnessy Asset Management helps the firm with custom products.
The firm’s acquisitions leave Franklin Templeton investors with a broad set of options, some of which are strong, but operational hurdles persist as the firm supports multiple autonomous investment teams across asset classes, regions, and investment platforms. Acquisitions in asset management, a people business, are hard to execute, though Franklin’s investment team turnover has been moderate so far.