Franklin Templeton has announced plans to acquire rival Legg Mason, creating a global investment management group with more than $1.5 trillion in assets under management. The deal, valued at $6.5 billion including debt, will increase the group’s alternative and institutional asset base.
Franklin Templeton president and chief executive, Jenny Johnson, said: “This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across multiple world-class affiliates, investment teams and distribution channels, bringing notable added leadership and strength in core fixed income, active equities and alternatives.” The deal will also expand Franklin Templeton’s multi-asset solutions, a key growth area for the firm, she added.
However, alternatives boutique Entrust Global will not join the enlarged group after its management agreed to buy it back from Legg Mason and take it private.
Legg Mason chairman and chief executive, Joseph A. Sullivan, said: “By preserving the autonomy of each investment organisation, the combination of Legg Mason and Franklin Templeton will quickly leverage our collective strengths, while minimising the risk of disruption.”
“Our clients will benefit from a shared vision, strong client-focused cultures, distinct investment capabilities and a broad distribution footprint in this powerful combination,” he added.