Thomas Gahan will be named head of alternatives by Franklin Templeton (BEN) Investments (BEN) on Feb. 1, following the close of the money manager's previously announced acquisition of Benefit Street Partners.
Mr. Gahan, Benefit Street's founder, will retain his roles as CEO and chief investment officer of the specialist private credit manager. Benefit Street Partners will continue to operate independently under its own name.
In the new position, Mr. Gahan will be "driving strategy as part of the firm's expanded oversight of BSP and the new capabilities it brings to Franklin Templeton," according to a statement from Franklin Templeton.
Mat Gulley, executive vice president of alternative strategies at Franklin Templeton, who heads the firm's alternatives business now, will remain on the team. Mr. Gulley will report to Mr. Gahan.
Separately, Franklin Templeton announced that David C. Saunders, founding managing director of K2, will assume the new role of chairman emeritus for FTI's hedge funds-of-funds business, effective April 1.
"Franklin Templeton and K2 have been planning for this transition over the past few years. Since Franklin Templeton acquired K2 in 2012, the firm has built out and developed K2's senior leadership to ensure continuity," the statement said.
Mr. Saunders will not be replaced directly. His duties will be assumed by a management group that includes longtime K2 investment specialists Robert Christian, senior managing director and head of investment research, and Brooks Ritchey, senior managing director and head of portfolio construction, the statement said.
Franklin Templeton managed a total of $649.9 billion as of Dec. 31, of which $10.7 billion was managed by the K2 unit.