Franklin Templeton Acquires Putnam Investments
Franklin Templeton, a global investment management firm, has announced its acquisition of Putnam Investments, a Boston-based asset manager. The acquisition is part of a larger effort by Franklin Templeton to expand its presence in the U.S. asset management market.
Background of Putnam Investments
Putnam Investments was founded in 1937 by George Putnam, a Boston-based investor. The company has grown to become one of the largest asset managers in the United States, with over $200 billion in assets under management. Putnam Investments is known for its focus on mutual funds, which are investment vehicles that pool the money of many investors to purchase a variety of securities.
Details of the Acquisition
The acquisition of Putnam Investments by Franklin Templeton is part of a larger effort by the firm to expand its presence in the U.S. asset management market. The deal is valued at $4.7 billion and is expected to close in the third quarter of 2023.
Under the terms of the deal, Franklin Templeton will acquire all of Putnam Investments’ assets, including its mutual funds, institutional accounts, and other investments. The acquisition will also include Putnam’s management team, which will remain in place.
Benefits of the Acquisition
The acquisition of Putnam Investments by Franklin Templeton is expected to bring a number of benefits to both companies. For Franklin Templeton, the acquisition will provide access to Putnam’s extensive network of financial advisors and clients, as well as its strong brand recognition in the U.S. asset management market.
For Putnam Investments, the acquisition will provide access to Franklin Templeton’s global platform, which includes a wide range of investment products and services. The acquisition will also provide Putnam with access to Franklin Templeton’s extensive research capabilities, which will help the company to better serve its clients.
The Desmarais Family Exits
The acquisition of Putnam Investments by Franklin Templeton marks the end of the Desmarais family’s involvement in the company. The Desmarais family had been the majority owners of Putnam since the early 2000s, when they acquired a majority stake in the company from George Putnam’s heirs.
The Desmarais family had been looking to exit their investment in Putnam for some time, and the acquisition by Franklin Templeton provides them with an opportunity to do so. The family is expected to receive a significant payout from the sale of their stake in Putnam.
The Future of Putnam Investments
The acquisition of Putnam Investments by Franklin Templeton is expected to be a positive development for the company. The acquisition will provide Putnam with access to Franklin Templeton’s global platform, which will enable the company to better serve its clients.
In addition, the acquisition will provide Putnam with access to Franklin Templeton’s extensive research capabilities, which will help the company to develop new products and services. The acquisition is also expected to provide Putnam with additional capital, which will enable the company to expand its operations and pursue new opportunities.
Conclusion
The acquisition of Putnam Investments by Franklin Templeton is a significant development in the U.S. asset management market. The acquisition will provide Putnam with access to Franklin Templeton’s global platform, which will enable the company to better serve its clients. In addition, the acquisition will provide Putnam with access to Franklin Templeton’s extensive research capabilities, which will help the company to develop new products and services. The acquisition is also expected to provide Putnam with additional capital, which will enable the company to expand its operations and pursue new opportunities.