Franklin Templeton has entered into a definitive agreement to acquire Putnam Investments from Great-West for approximately US$925 million largely in equities.
Great-West will become a shareholder in Franklin Resources, with an approximate 6.2% stake. The deal is part of a strategic partnership with Power Corporation of Canada with its subsidiaries, the Power Group of Companies and Great-West Lifeco. The Power Group of Companies including Great-West and IGM Financial in the global insurance, retirement, asset management and wealth management sectors and have collective assets under management and/or administration (AUM/AUA) of approximately US$2.1 trillion. Great-West includes Empower in the US as well as Canada Life in Canada and Irish Life in Europe.
IGM encompasses subsidiaries Mackenzie Financial and IG Wealth Management and also has investments in Rockefeller Capital Management and China Asset Management Co. Great-West will provide an initial long-term asset allocation of US$25 billion to Franklin Templeton’s specialist investment managers within 12 months of closing with that amount expected to increase over the next several years. The strategic partnership is to help Franklin Templeton further grow insurance client assets, and broadens the relationship between Franklin Templeton and the Power Group of Companies in key areas of retirement, asset management and wealth management.
Founded in 1937, Putnam is a global asset management firm with US$136 billion in AUM as of April 2023. Putnam has offices in Boston, London, Munich, Tokyo, Singapore and Sydney. Putnam’s complementary capabilities and track record of strong investment performance accelerates Franklin Templeton’s growth in the retirement markets by increasing its defined contribution AUM and expanding its insurance assets, while adding further scale and efficiency to Franklin Templeton’s mutual fund platform. Consistent with Franklin Templeton’s previous acquisitions, the execution plan is designed to minimise disruption to Putnam’s investment teams and client relationships.
“This is a compelling transaction for Franklin Templeton, and we are excited about the numerous opportunities that will be unlocked by this long-term strategic partnership with the Power Group of Companies including Great-West,” said Jenny Johnson, president and CEO of Franklin Templeton.
“Power and Great-West are global leaders across financial services, particularly in the wealth, insurance and retirement channels. With outstanding investment performance, Putnam will add complementary capabilities to our existing specialist investment managers to meet the varied needs of our clients and will increase Franklin Templeton’s defined contribution AUM. We are pleased to welcome Great-West as a strategic investor, along with the impressive team at Putnam.”
©Markets Media Europe 2023
