Alternatives

Alternative investments? 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.

US$283 bn

Alternative assets under management

40+ years

Private markets investing experience

490

Private markets investment professionals

Data as of 31/03/2026.

Welcome

Overview

Private markets 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.

Franklin Templeton created this platform to bring down barriers to private markets investments as an important source of returns for more investors.

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.

TBD

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.

TBD

Private credit

Private credit encompasses various forms of debt investments extended to

companies or individuals, bypassing traditional banking systems.

TBD

Venture capital

Venture capital targets early-stage, high-growth companies, investing for equity

ownership. This fosters rapid growth, aiming for profitable exits via acquisitions or initial public offerings, harnessing innovation and substantial expansion potential.

TBD

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.

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.

Clarion Partners logo
1982
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. 

Clarion Partners logo
1984

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

Clarion Partners logo
2008
2019

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

Clarion Partners logo
1994
2022

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

Clarion Partners logo
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. 

Understanding potential portfolio impact

Private market investments have attractive features as standalone investments, but the real potential power of private marketts can be best understood in a total portfolio perspective. Below the performance and volatility reducing benefits are demonstrated by starting with a hypothetical 60/40 portfolio, then adding a mix of private markets investments for different desired outcomes.

ALLOCATION

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

10%
20%
30%

Hypothetical Traditional Portfolio

Chart

Chart with 2 data points.
End of interactive chart.

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

10% Private Markets:

  • 2% Global Private Equity
  • 2% Global Private Debt
  • 2% Global Private Real Estate
  • 2% Global Venture Capital
  • 2% Global Hedge Fund Composite

Chart

Chart with 3 data points.
End of interactive chart.

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 private markets 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.

Franklin K2 Athena Fund

The Fund seeks to achieve long-term capital appreciation with lower volatility relative to the broader equity markets and substantially less correlation to traditional asset classes over a full market cycle by pursuing various risk premia strategies, which seek to profit from persistent behavioural and/or structural anomalies or other factors.

Franklin Lexington Private Equity Secondaries Fund

The Fund seeks to achieve long-term capital appreciation by providing access to a diversified portfolio of private equity assets, with a focus on secondaries private equity investments. Designed for long-term growth, the Fund offers accessible entry into private equity markets.

Contact us

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

 

Our knowledge hub

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.

Read now

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.

Read now

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.

Read now

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

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.

Footnotes

  1. 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.
  2. Cumulative return: Cumulative return shows the change in the investment’s or index’s value over the time period indicated.

Important information

Franklin Templeton Australia Limited (ABN76 004 835 849, AFSL 240827) is the Responsible Entity and/or investment manager of the products included in this website.

Information on this website is intended to be of general information only and does not constitute investment or financial product advice. It expresses no views as to the suitability of the products or services described as to the individual circumstances, objectives, financial situation, or needs of any investor. You should conduct your own investigation or consult a financial adviser before making any decision to invest. Please read the relevant Product Disclosure Statements (PDSs), and any associated reference documents before making an investment decision. Neither Franklin Templeton Australia, nor any other company within the Franklin Templeton group guarantees the performance of any Fund, nor do they provide any guarantee in respect of the repayment of your capital.

In accordance with the Design and Distribution Obligations, we maintain Target Market Determinations (TMD) for each of our Funds. All documents can be found via the Literature Page or by calling 1800 673 776.

Past performance is not an indicator nor a guarantee of future performance. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. All investments involve risks, including possible loss of principal.

© Copyright Franklin Templeton Australia Limited. You may only reproduce, circulate and use this document (or any part of it) with the consent of Franklin Templeton Australia Limited.