The proceeds of the acquisition will be used by K2 to buy all equity currently held by TA Associates and to retire all of K2’s debt obligations. The current management of K2 will not sell any of its interests at this time and will receive no up-front consideration in the deal, according to a statement fromFranklin Resources.

Starting in 2016, Franklin Templeton will acquire the remainder of K2 over several years. The transaction is subject to regulatory approval and expected to close in the calendar fourth quarter of 2012.

 K2 was co-founded in 1994 by William Douglass and David Saunders and is based in Stamford, Connecticut. The men have entered into long-term employment arrangements and will continue to manage the business. No changes are planned for the K2 investment management processes.

Besides its Stamford office, K2 has offices in New York City, London, Tokyo, Hong Kong and Sydney. Franklin Resources had $731 billion in assets under management as at 31 August.