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Franklin Templeton to Purchase Putnam Investments from Great-West

Service Providers

Another blockbuster deal was announced Wednesday. Franklin Resources, the  parent company of Franklin Templeton, entered into a definitive agreement to buy Putnam Investments. 

Image: Shutterstock.comAccording to the companies, Franklin Templeton will acquire Putnam for approximately $925 million of primarily equity consideration, and seller Great-West will become a long-term strategic shareholder in Franklin Resources, with an approximate 6.2% stake.

In addition, Great-West will provide an initial long-term asset allocation of $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 involves the Power Corporation of Canada several subsidiaries, the Power Group of Companies and Great-West Lifeco, and IGM Financial, which have collective assets under management of approximately $2.1 trillion.

Great-West includes Empower in the U.S., 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.

The partnership aligns with Franklin Templeton’s plan to grow insurance client assets, and broadens the relationship between Franklin Templeton and the Power Group of Companies in the areas of retirement, asset management and wealth management, the companies said.

Founded in 1937, Putnam is a global asset management firm with $136 billion in AUM as of April 2023. The deal will supposedly help accelerate Franklin Templeton’s growth in the retirement markets by increasing its defined contribution AUM and expanding its insurance assets, while adding scale and efficiency to Franklin Templeton’s mutual fund platform. 

“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,” Franklin Templeton President and CEO Jenny Johnson said in a statement. “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.”

“Critical to this transaction is the strong alignment between our organizations. We share a client-centric culture, a core belief in active management, a collaborative and research-based investment approach, and a long-held commitment to fundamental investment principles,” added Robert Reynolds, President and CEO of Putnam. “We look forward to joining Franklin Templeton in this next phase of our growth, as we come together to serve our clients, upholding our commitment to them and their needs.”

Transaction Details

The announcement further noted that the transaction is structured to maintain Franklin Templeton’s financial flexibility and enhance continued investment across the firm. Franklin Templeton will pay approximately $825 million in stock consideration up-front at closing and $100 million in cash 180 days after closing for 100% of Putnam.

Franklin Resources, Inc. will issue 33.3 million shares of its common stock to Great-West, 26.2 million of these shares, representing 4.9% of Franklin Resources, Inc.’s outstanding common stock, are subject to a 5-year lock-up, and the remaining shares are subject to a 180-day lock-up. In addition, Franklin Templeton will pay up to $375 million in contingent consideration tied to revenue growth targets from the partnership.

The transaction is expected to close in the fourth calendar quarter of 2023, subject to customary closing conditions. An investor presentation on the transaction is available via

Ardea Partners LP served as lead financial advisor and Broadhaven Capital Partners LLC provided financial advice to Franklin Templeton. Willkie Farr & Gallagher LLP served as legal counsel.