Franklin Templeton, Inc. ("Franklin Templeton") (NYSE:BEN), through its leading real estate subsidiary Clarion Partners, LLC, ("Clarion"), is pleased to announce that it has entered into a definitive agreement to acquire a majority stake in Stoneshield Capital ("Stoneshield"). The transaction will triple Clarion’s European AUM to $13 billion (€11 billion), increase Clarion’s total AUM by 12% to $82 billion (€72 billion), and bring Franklin Templeton’s total Alternatives AUM to over $300 billion (€265 billion).

Stoneshield is a leading European sector-specialist real assets manager with $9 billion (€8 billion) under management. The firm’s investment strategies are thematic and focused on supply-constrained sectors, including living & student housing, digital infrastructure, science & innovation, hospitality, and critical infrastructure.

With the addition of Stoneshield, Clarion’s European presence is reinforced, augmenting its existing focus on institutional logistics and net leased assets with Stoneshield’s digital, living, and industrial storage capabilities. Stoneshield’s investment products include a series of closed-end diversified opportunistic funds, as well as an investment platform focused specifically on the student housing and living sectors. The firm also has strategic ownership positions in several of Europe’s leading and fastest-growing real asset platforms, including MiCampus, one of Europe’s largest purpose-built student accommodation (PBSA) platforms; Solaria, a leading European renewable energy and AI infrastructure developer; Exolum, a leading owner and operator of critical energy infrastructure serving the liquid fuels industry; Neinor Homes, the largest homebuilder in Spain, and Meliá Hotels International, one of the world’s largest hotel groups.

Stoneshield will become Clarion’s dedicated opportunistic investment platform in Europe, maintaining its office locations in Spain, Portugal, Ireland, UK, and Luxembourg. As part of the transaction, co-founders Juan Pepa and Felipe Morenés remain committed to leading Stoneshield over the long term, retaining responsibility for the firm’s investment strategy, growth, and day-to-day operations. Working closely with the broader Clarion Partners and Franklin Templeton organizations, they will also play a central role in expanding the firm’s European real assets platform, developing new investment strategies across their areas of expertise, and creating innovative products for institutional and wealth clients globally. Together, they will continue to pursue strategic growth opportunities through new investment themes, geographic expansion, and selective acquisitions.

The transaction is expected to close in the fourth calendar quarter of 2026, subject to customary closing conditions, including the completion of certain regulatory filings.