Franklin Raises Private Markets Target, Posts $16.9B Net Inflows and $118B Sales
Franklin Resources posted $16.9 billion in long-term net inflows and record gross sales of $118 billion in Q2, driven by diversified international growth and fixed income momentum. The firm raised its private markets fundraising target to $25-30 billion and now expects to exceed $30 billion in FY2025, with fee-revenue growth driving margins above 29%.
1. Q2 Net Inflows and Record Sales
Franklin Resources posted $16.9 billion in long-term net inflows and record gross sales of $118 billion in Q2, with positive flows across every region and sustained momentum in fixed income and multi-asset strategies.
2. Private Markets Fundraising Outlook
The firm raised its annual private markets fundraising target to $25–30 billion and now anticipates exceeding $30 billion for fiscal 2025, supported by a stable $20.2 billion institutional pipeline of won but unfunded mandates.
3. Fee Revenue and Margin Guidance
Expense guidance for the full year assumes a 1.5% increase, while investment management fee revenue is projected to grow at four times that rate, driving margin expansion into the high 29s in Q4 and above 30% in 2027.
4. Strategic Product Initiatives
Ahead of its five-year strategic plan, the company is expanding private markets, retail SMAs, active ETFs for major portfolio managers and extending its Canvas customization platform to enhance integrated solutions.