Franklin Templeton announced Wednesday that it has entered into an agreement to acquire Apera Asset Management LLP, a U.K. lower middle-market private credit manager.
The acquisition will expand Franklin Templeton’s alternatives platform and its direct lending capabilities in the European lower-middle market, specifically targeting Western Europe, according to a statement from Franklin Templeton.
Apera will join Franklin Templeton’s other private credit subsidiaries, which include New York-based Benefit Street Partners and London-based Alcentra, which Franklin Templeton acquired in 2018 and 2022, respectively.
According to Franklin Templeton, the European lower-middle market is a segment underserved relative to the broader private credit landscape. Alcentra, which has a large European credit focus, primarily services middle market firms in northern Europe, according to its website.
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“Apera is a strong strategic fit for our platform,” said David Manlowe, the CEO of Benefit Street Partners, in a statement. “Their focus on the European lower middle market adds a new dimension to our global private credit capabilities. It’s a segment distinct from those served by BSP and Alcentra, and one where Apera’s local expertise and disciplined underwriting approach provide access to attractive, risk-adjusted returns.”
The acquisition, expected to close in the year’s third quarter, pending regulatory approvals, would increase Franklin Templeton’s alternative credit assets under management to $87 billion and alternative asset AUM to $260 billion. Franklin Templeton did not disclose the acquisition price.
Based in London, Apera has deployed 4 billion euros ($4.56 billion) across more than 75 transactions since being founded in 2016, according to the firm’s website. The firm manages 5 billion euros in assets, according to a statement from Franklin Templeton.
Asset managers looking to bolster their offerings in the asset class are increasingly turning to acquisitions of private credit firms. In December 2024, BlackRock announced that it would acquire HPS Investment Partners, a credit manager with $148 billion in AUM, for $12 billion. That transaction is expected to close in the middle of this year.
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Tags: Acquisition, Apera, Franklin Templeton, Private Credit
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