Simpson Thacher advised Franklin Templeton and its affiliates in connection with the closing of Franklin Templeton’s first collateralized fund obligation (“CFO”) on August 19, 2026. The $1.5 billion CFO provides investors with diversified exposure to a pool of private equity secondaries funds and continuation vehicles managed by Lexington Partners and middle market direct lending funds managed by Benefit Street Partners.
The CFO transaction highlights the breadth of Franklin Templeton’s private markets platform and expands Franklin Templeton’s ability to provide structured private market solutions to a range of investors that are increasingly showing interest in structured products like CFOs.
The Simpson Thacher team included Adam Risell, Lauren King, Barrie Covit, Steven Klar, Anat Holtzman, Amanda Ng, James Board, Ryan Brizek, Debbie Sutter, Ryan Marosy, Henry Han, Blake Marsee, Zach Cracknell, Drew Johnson, Thomas Flament and Julien Slos and Mark Raymond (Funds); Jonanthan Goldstein, Kathryn Stone, George Rhein and Spencer Landis (Tax).