Franklin's Arm Set to Expand Alternative Platform With Stoneshield Deal

Franklin Templeton, Inc. BEN is deepening its presence in European alternatives as its real estate investment arm, Clarion Partners, LLC (“Clarion”), agrees to acquire a majority stake in Stoneshield Capital (Stoneshield). The transaction is expected to close in the fourth quarter of 2026, subject to customary conditions and regulatory approvals.

Stoneshield is a specialized European real estate platform focused on living and student housing, digital infrastructure, hospitality and critical infrastructure. Its presence across Spain, Portugal, Ireland, the United Kingdom and Luxembourg expands Clarion’s European footprint and strengthens its exposure to specialized real asset markets.

The deal brings Stoneshield’s $9 billion in assets under management (AUM) onto Clarion’s platform, taking its European AUM to $13 billion and total AUM to $82 billion. The transaction comes as BEN continues to expand its alternatives business, which recorded a compound annual growth rate (CAGR) of 16.7% in alternative AUM over the five years ended fiscal 2025. Growth continued in the first nine months of fiscal 2026, driven by demand for private credit, infrastructure, real estate and other alternative investments. The transaction will bring Franklin’s total alternatives AUM to more than $300 billion, further expanding its scale in private markets.

The acquisition will strengthen BEN’s European alternatives platform by adding complementary real estate and infrastructure capabilities. Stoneshield’s exposure to living and student housing, hospitality, digital infrastructure and critical infrastructure will expand its investment offerings and create additional opportunities across institutional and wealth-management channels. Its presence across multiple European markets can also help Franklin broaden distribution, attract new capital, grow fee-earning AUM and support long-term fee revenue growth.

Franklin has been expanding its alternatives platform through acquisitions and strategic partnerships. The 2025 acquisition of Apera strengthened its European private-credit capabilities and helped push alternative-credit AUM above $90 billion. Earlier acquisitions of Alcentra and Lexington Partners added private debt and secondaries capabilities, while partnerships with Copenhagen Infrastructure Partners, DigitalBridge and Actis expanded its infrastructure business. These investments have helped the company diversify its alternatives platform beyond traditional asset management.

With the Stoneshield acquisition, Franklin will add another established platform to its growing alternatives business. The deal will increase AUM, broaden its European real estate capabilities and provide additional investment strategies for institutional and wealth-management clients. Continued expansion in alternatives remains an important part of Franklin’s strategy to diversify its asset-management business and drive long-term fee revenue growth.

How Are Other Asset Managers Scaling Their Alternatives Platforms?

Similar to BEN, other asset managers like BlackRock BLK and T. Rowe Price TROW are expanding their alternatives platforms through acquisitions, partnerships and new product launches.

BlackRock has strengthened its alternatives platform through strategic acquisitions, including Global Infrastructure Partners, HPS Investment Partners, Preqin, ElmTree Funds and SpiderRock. These deals have expanded its presence in infrastructure, private credit and alternative investments, while supporting fundraising, cross-selling and higher-margin revenue growth. The initiatives are expected to diversify BlackRock’s business further and support long-term growth.

T. Rowe Price is similarly expanding its alternatives platform through new products, partnerships and acquisitions. In March 2026, it introduced the T. Rowe Price OHA Flexible Credit Income Fund in partnership with OHA. Its partnership with Goldman Sachs also led to the July 2026 launch of the T. Rowe Price Goldman Sachs Private Markets Fund. Earlier acquisitions of OHA and Retiree strengthened T. Rowe Price’s alternative investment capabilities, while its focus on private credit and private markets is expected to support AUM and revenue growth.

BEN’s Price Performance & Zacks Rank

Over the past year, BEN shares have gained 41.1% against the industry’s 7.8% decline.

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The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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