Franklin Templeton Completes K2 Acquisition

Nov 1 2012 | 9:35am ET

Franklin Templeton Investments has completed its acquisition of a majority stake in fund of hedge funds manager K2 Advisors. The value of the transaction was not revealed.

The deal will enhance Franklin Templeton's alternative investments and multi-asset solutions platforms.

K2 will use the proceeds of the sale to buy all equity now held by TA Associates and to retire all its debt obligations. The current management of K2 has not sold any of its interests and has not received any up-front consideration in this transaction. Franklin Templeton will acquire the remainder of K2 over a multi-year period.

William Yun, executive vice president of Franklin Templeton Alternative Strategies, said in a statement: "The continued development of our alternatives platform has been a core strategic initiative for Franklin Templeton, and to that end, we've focused on creating new investment strategies and broadening our distribution capabilities across multiple channels. K2 is an important addition to those capabilities, particularly as institutional investors continue to shift allocations towards the hedge fund and fund of hedge funds space and to look for multi-asset solutions providers."

K2 was co-founded in 1994 by William A. Douglass III and David C. Saunders, who will continue to manage the business. No changes are planned for the K2 investment management processes. K2 oversees aggregated assets of approximately $9.0 billion as of September 30, 2012.

Franklin Templeton Alternative Strategies is a division of Franklin Resources, a global investment management organization operating as Franklin Templeton Investments. The San Mateo, CA-based company has more than 60 years of investment experience and over $749 billion in assets under management as of September 30, 2012.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR