Alternatives by Franklin Templeton

PRIVATE MARKETS Access granted 
With a single relationship, Franklin Templeton offers clients access to a diversified platform of alternative asset capabilities backed by specialist investment managers with deep expertise in their domain.
This is a marketing communication. Please refer to the prospectus or information document of the UCITS and, where available, to the KID before making any final investment decisions.
US$274 bn
Alternative assets under management
40+ years
Alternative investing experience
50+ strategies
Across alternative asset classes and investment vehicles
Data as of 31/12/2025.

It’s good to have alternatives

Alternative investing has traditionally been confined by high minimum investment levels, operational complexities, and strict asset and income threshold requirements, limiting access to institutions and high net-worth individuals.

At Franklin Templeton, we’re committed to breaking down these barriers with a clear mission to democratise alternative investing, transforming it into an accessible and essential source of returns for all.

Investors need solutions and that means delivering capabilities to financial advisors using a consultative approach and a total portfolio outcome mindset.

Our alternative investment capabilities

The broad asset class coverage available with Franklin Templeton means we have both the flexibility and expertise to follow the conversation wherever the client needs lead us.

Private equity

Private equity involves investing in privately held companies outside of the

stock market covering various company growth stages, from startups to established businesses.

Private credit

Private credit encompasses various forms of debt investments extended to

companies or individuals, bypassing traditional banking systems.

Digital assets

Digital assets include electronic or digital forms of assets, such as cryptocurrencies

like Bitcoin and Ethereum, digital tokens, and blockchain-based assets.

Private Infrastructure

Private infrastructure offers exposure to essential services and long-lived assets.

The asset class has experienced rapid growth in recent years, driven by massive capital needs for energy transition, digitlization and modernization of essential assets.

Real estate

The real estate asset class involves strategic investment in diverse properties

like residential homes, commercial buildings, land, and Real Estate Investment Trusts (REITs), offering investors seeking stability, income, and potential long-term growth in the dynamic property market.

Hedged strategies

Hedged strategies encompass various investment techniques designed to

mitigate overall risk in a portfolio. They typically utilize methods like derivatives, short selling, or alternative investments to provide a diversified and resilient approach.

Our family of alternative investment specialists

At Franklin Templeton, we continue to expand our alternative investment capabilities and build innovative products through the acquisition and utilisation of independent specialist investment managers, each of whom has deep expertise in a specific asset class and long-term experience managing assets for some of the largest institutions in the world.

Learn more about the managers within our six major alternative investment capabilities.

Founded

1982

Acquired by FT

2021

Clarion Partners is one of the largest pure-play real estate investment managers offering a broad range of real estate strategies across the risk-return spectrum for global investors.

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Founded

1984

Franklin Real Asset Advisors provides global expertise in private real estate funds, including core, non-core and impact investing strategies.

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Founded

2008

Acquired by FT

2019

An alternative credit pioneer that seeks to deliver attractive returns through its relationships, specialist expertise and global reach

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Founded

1994

Acquired by FT

2022

Lexington Partners is one of the world's largest managers of secondary private equity and co-investment funds.

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Founded

1994

Franklin Templeton Investment Solutions (FTIS) Absolute Return Portfolio Management team is a well-established team with deep experience in hedge fund investing. The team provides a full range of hedge fund investment capabilities covering all aspects of hedge fund and liquid alternatives.

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Team formally founded

2015

Franklin Venture Partners is the private investing platform within the Franklin Equity Group focused on mid-and late-stage private companies with access to early-stage ideas sourced through industry, academic and venture capital networks.

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Venture team formally founded

2021

Franklin Templeton Digital Assets has the expertise and resources to help advance your digital asset investment strategy or business. From launching the industry’s first on-chain money market fund, to funding blockchain start-up, Franklin Templeton Digital Assets is setting the pace of innovation for the global asset management industry.

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Team formally founded

2020

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Understanding potential portfolio impact

Alternative investments offer appealing characteristics on their own, but their true potential shines when viewed within the context of a total portfolio. The charts below illustrate how adding a mix of alternative investments to a hypothetical 60/40 portfolio can enhance performance and reduce volatility. Select the buttons below to explore different desired outcomes and allocations, and see the impact of incorporating alternative investments into your portfolio.

ALLOCATION

Choose an allocation to alternative investments and compare the results of the hypothetical portfolio.

10%

20%

30%

Hypothetical Traditional Portfolio

Risk and Return

12/31/2005 - 09/30/2025

11.3%

Annualised risk¹

6.7%

Annualised return

261.9%

Cumulative
return²

Hypothetical Portfolio with Alternatives

64% Global Stocks

26% Global Bonds

Risk and Return

12/31/2005 - 09/30/2025

12.1%

Annualised risk¹

7.6%

Annualised return

325.1%

Cumulative
return²

NOTE:
Hypothetical 18-year portfolio return with or without alternative investments as of 30/09/2025. For illustrative purposes only. Hypothetical portfolio results shown do not represent the performance of an actual investment. Stocks, bonds, private equity, private credit, private real estate and hedge funds are respectively represented by the MSCI World NR USD Index, Bloomberg Global Aggregate Bond Index, MSCI Global Private Equity Closed-End Fund Index (Unfrozen; USD), MSCI Global Private Credit Closed-End Fund Index (Unfrozen; USD), MSCI Global Private Real Estate Closed-End Fund Index (Unfrozen; USD), MSCI Global Venture Capital Closed-End Fund Index (Unfrozen; USD) and HFRI Fund Weighted Composite Index USD. Please note that an investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. Diversification does not assure a profit or protect against market loss. All investments involve risk, including loss of principal. Past performance is no guarantee of future results.

Learn about our investment strategies

Innovative strategies from independent investment specialists are available across a number of liquid and semi-liquid vehicles.

The Fund's investment objective is to seek long-term capital appreciation and to generate current income by investing primarily in a portfolio of commercial real estate (“CRE”) debt investments, focused on senior secured, CRE loans across various Metropolitan Statistical Areas in the United States, and other real-estate related debt and equity investments, which may include subordinated debt (together with CRE Investments, the “Real Estate Debt Investments”).

Total net assets
31/12/2025$83.82m

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The Fund's investment objective is to seek long-term capital appreciation by investing in a diversified portfolio of private assets, including private equity, infrastructure, and real assets, through private investment funds, offering flexibility across various asset types.

Total net assets
31/12/2025$1.65b

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The Fund’s investment objective is to seek capital appreciation with lower volatility relative to the broad equity markets. The Fund seeks to achieve its investment goal by allocating its assets across multiple alternative strategies.

Total net assets
31/01/2026$497.53m

Dividend frequency
Monthly

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The Fund’s investment objective is to seek capital appreciation with lower volatility relative to the broader equity markets by pursuing various risk premia strategies, which seek to profit from persistent behavioural and/or structural anomalies or other factors.

Total net assets
31/01/2026$179.75m

Dividend frequency
Monthly

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The Fund’s investment objective is to seek to generate attractive risk-adjusted returns over time with limited correlation to other asset classes through investment in a portfolio of natural catastrophe bonds.

Total net assets
31/01/2026$274.57

Dividend frequency
Monthly

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Contact usReady to explore partnership opportunities? Contact us today to gain access to our comprehensive range of products and services.

By email[email protected]

Insight

Evergreen principles for liquidity sleeve management

Effective liquidity management is crucial for evergreen funds, and this paper delves into the strategic design and dynamic adjusting of liquidity sleeves to balance accessibility of capital and optimal investment performance.

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Insight

Private Markets Insights: Private Equity Secondaries - A primary allocation

Private equity is at a turning point, with investors and advisors exploring the best ways to allocate across sub-strategies. There is a compelling case for private equity secondaries serving as the cornerstone of a core/satellite evergreen model.

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Insight

Private Markets Insights: Not a simple open and closed case

Evergreen and closed-ended funds offer different paths to private markets - understanding their strengths can help investors optimise allocations.

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Education

Alternatives education by Franklin Templeton Academy

The Franklin Templeton Academy Alternatives program empowers partners to navigate alternative investments confidently. Visit our Franklin Templeton Academy section to find out more information on our alternatives training programs for financial professionals.

Learn more now

Go to knowledge hub

Glossary

Private debt

Private debt funds typically invest in non-listed debt issues, including bonds, notes and loans issued by private companies. Private debt has the potential to provide greater returns, control and reduced liquidity, than public markets.

Alternative credit

Alternative credit invests in below-investment-grade fixed income sectors that are relatively illiquid. Alternative credit may not be available to investors for direct investment as individuals but can be accessed through professionally managed traditional mutual funds.

Unconstrained investing

Unconstrained strategies trades securities with few restrictions on when and how they buy and sell. Many unconstrained strategies do set a formal or informal a target for volatility that provides a limitation on the level of risks incurred.

Hedged strategies

Hedged strategies (also referred to as alternative strategies) use both long and short positions in markets. Some of the most common strategies are long and short equity, global macro, relative value and credit. Hedged strategies appeal to investors who are looking to diversify their investment, in an attempt to minimise market beta returns while seeking alpha and risk-adjusted returns.

Real assets

Real assets typically invest in tangible assets that derive value from their substance and physical presence. These include real estate, public and private infrastructure, natural resources, precious metals and commodities.

Annualised standard deviation: A measure of the degree to which an investment’s or index’s return varies from the average of its previous returns. The larger the standard deviation, the greater likelihood (and risk) that the performance will fluctuate from the average return.
Cumulative return: Cumulative return shows the change in the investment’s or index’s value over the time period indicated.

Important Information

Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.

Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or sell any investment or interest.

Investment risks

Private equity & venture capital investments involve a high degree of risk and are suitable only for investors who can afford to risk the loss of all or substantially all of such investment. Private equity investments and vehicles that invest in them should be considered illiquid and their performance may be volatile. There can be no assurance that any investment will be adequately compensated for risks taken.

Private credit investments including private debt and loans are suitable only for investors who can bear the risks associated with private market investments with potential limited liquidity.

Digital asset investments have historically been subject to greater volatility of returns with additional risks associated with the issuance, redemption, transfer, custody and record keeping of shares maintained and recorded primarily on a blockchain.

Real estate investments should be viewed as a long-term investments with limited liquidity and are suitable only for investors who can afford to risk the loss of all or substantially all of such investment.

Hedged strategy investments can be complex and require a thorough understanding of the underlying instruments and strategies.

Infrastructure Investments can be exposed to numerous risks that may not offer recourse to the project sponsor and ultimately investors. For example, delays in obtaining necessary permits or a shift in political or public sentiment could hinder progress or cause a project to terminate. Other risks that can impact an infrastructure investment include, but are not limited to: construction delays, environmental concerns, contract or labor disputes, or financial/default risks from a deterioration in a sponsor’s credit. Additionally, the securities tied to such projects may be private in nature which increases the illiquid nature of such investment and reduce visibility into information about the investment. Private securities would not be listed on a public exchange, and no secondary market would be expected to develop.

Access granted

It’s good to have alternatives