Franklin Resources, Inc. (NYSE: BEN), which operates as Franklin Templeton Investments and is the parent company of Toronto-based Franklin Templeton Investments Corp., has agreed to acquire a majority stake in K2 Advisors Holdings LLC, an independent fund of hedge funds manager.
San Mateo, Calif.-based Franklin Templeton said Wednesday that the acquisition of Stamford, Conn.-based K2 will enhance its alternative investments and multi-asset solutions platforms.
The transaction is expected to close in the fourth quarter of 2012.
Beginning in 2016, Franklin Templeton will acquire the remainder of K2 over a multi-year period.
K2, co-founded in 1994 by William A. Douglass III and David C. Saunders, is a fund of hedge funds management company with strong risk management, manager selection and asset allocation capabilities. K2 has a multi-team investment process and manager evaluation expertise that has resulted in over 18 years of strong growth and performance that ranks among the leaders in the industry.
No changes are planned for the K2 investment management processes.
K2 has a global presence with 115 employees in the U.S., U.K., Japan, Australia and Hong Kong, and approximately US$9.3 billion in assets under management as of August 31, 2012.
“One of the ways that we have built Franklin Templeton’s global business is by making strategic investments in smaller, highly experienced asset management companies whose expertise complements Franklin Templeton’s global offerings and meets our world-class standards,” said Greg Johnson, CEO of Franklin Templeton Investments., in a release. “This new relationship with K2 is an important step in our overall plan to expand Franklin Templeton’s alternative strategies and solutions platform.”