Franklin Templeton has announced the launch of a private equity (PE) secondaries fund designed for wealth channel clients, which comes to market with more than $875m in assets under management.

The Franklin Lexington PE Secondaries Fund (FLEX-I) is a sub-fund of the Luxembourg-domiciled Franklin Lexington Private Markets Fund SICAV SA range, and is co-managed by Franklin Templeton and Lexington Partners.

It is the firm’s first evergreen fund for the wealth channel internationally, with the fund being notified for distribution to professionals in the European Economic Area, the UK, Switzerland, Canada, and certain Middle Eastern, Latin American and APAC jurisdictions.

FLEX-I is designed for wealth channel clients looking for long-term growth opportunities, offering access to an asset class that has traditionally been primarily available to institutional investors.

Its investment objective is to achieve long-term capital appreciation through investing in a diversified portfolio of PE investments acquired through secondary transactions and co-investments in new PE transactions alongside sponsors.

FLEX-I will also seek to invest in private assets across asset types, such as buyout, growth, venture, credit, mezzanine, infrastructure, energy, and other real assets.

“We are excited to partner with Lexington on this product which represents a key addition to our Alternatives by Franklin Templeton product range,” commented Franklin Templeton head of alternatives EMEA wealth management, George Szemere.

“Our goal is to unlock access to high-quality private equity for international investors in the wealth channel.

“Following a similar launch in the US which has generated over $1.2bn in US investor subscriptions, FLEX-I now comes to market with over $875m in assets under management from international investors.

“This exciting launch marks a pivotal moment for our private wealth expansion internationally and reinforces our commitment to becoming a leading player in the alternatives wealth channel."

Lexington partner and president, Wil Warren, added: “The secondary market remains undercapitalised despite a significant supply of deal flow, creating opportunities for investors to acquire attractive exposure.

“FLEX-I will complement our traditional drawdown funds, which currently represent $72.4bn in assets, and reflects our commitment to delivering strong, long-term risk-adjusted returns.

“By leveraging our experience and leadership in private markets, FLEX-I will play a pivotal role in our strategy to expand our capital base and enhance value creation for our investors.”

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