Franklin Templeton Investments has bought a majority stake in fund of hedge funds manager K2 Advisors, in the latest example of consolidation in the struggling sector.

According to a statement from both firms, the proceeds of the deal will be used by K2 to buy all of the equity currently held by TA Associates, a Boston-based private equity firm that bought a minority stake in K2 back in 2007 for an undisclosed amount. The deal will also retire all of K2's debt obligations. Terms of the deal were not disclosed, but the statement says that Franklin Templeton now owns a majority stake.