Friday, 1 July 2016
Last updated 17 min ago
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.