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$258 bn
Alternative assets under management
40+ years
Alternative investing experience
50+ strategies
Across alternative asset classes and investment vehicles
Data as of 30/06/2025.
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.
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 involves investing in privately held companies outside of the
stock market covering various company growth stages, from startups to established businesses.
Private credit encompasses various forms of debt investments extended to
companies or individuals, bypassing traditional banking systems.
Digital assets include electronic or digital forms of assets, such as cryptocurrencies
like Bitcoin and Ethereum, digital tokens, and blockchain-based assets.
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.
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 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.
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.
Established
1982Acquired by FT
2021Clarion 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.
Established
1984Franklin Real Asset Advisors provides global expertise in private real estate funds, including core, non-core and impact investing strategies.
Established
2008/2002Acquired by FT
2019/2022BSP-Alcentra is one of the largest alternative credit asset managers globally, utilizing a multi-strategy approach targeting attractive opportunities in the global credit markets.
Established
1994Acquired by FT
2022Lexington Partners is one of the world's largest managers of secondary private equity and co-investment funds.
Established
1994Franklin 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.
Team formally established
2015Franklin 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.
Venture team formally established
2021Franklin Templeton Digital Assets has the expertise and resources to help advance your digital asset investment strategy or business. From launching the industry’s first tokenized money market fund, to funding blockchain start-up, Franklin Templeton Digital Assets is setting the pace of innovation for the global asset management industry.
Team formally established
2020Franklin Templeton Digital Assets has the expertise and resources to help advance your digital asset investment strategy or business. From launching the industry’s first tokenized money market fund, to funding blockchain start-up, Franklin Templeton Digital Assets is setting the pace of innovation for the global asset management industry.
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.
Choose an allocation to alternative investments and compare the results of the hypothetical portfolio.
Risk and Return
12/31/2005 - 12/31/2024
11.4%
Annualised risk1
6.5%
Annualised return
224.5%
Cumulative
return2
64% Global Stocks
26% Global Bonds
10% Alternatives:
Risk and Return
12/31/2005 - 12/31/2024
12.2%
Annualised risk1
7.3%
Annualised return
276.7%
Cumulative
return2
NOTE:
Hypothetical 18-year portfolio return with or without alternative investments as of 30/06/2025. 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.
Innovative strategies from independent investment specialists are available across a number of liquid and semi-liquid vehicles.
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.
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.
Ready to explore partnership opportunities? Contact us today to gain access to our comprehensive range of products and services.
The Franklin Templeton knowledge hub provides educational resources to help empower partners to navigate alternative investments. Explore our knowledge hub section to find out more about our experts’ latest thinking, unique opportunities, and an in-depth understanding of the alternatives market.
The first in our ‘Accessing Private Assets’ series aimed at providing transparency on private asset products, we explore how managers support the periodic liquidity (subscriptions and redemptions) available to investors in semi-liquid fund structures.
Private markets have historically delivered an “illiquidity premium” which has been captured by many institutions in their asset allocation to alternatives. Learn more about the illiquidity premium and get some ideas about allocating to private markets.
The global secondary market has grown over the past three decades primarily because of the increased supply of capital committed to private investment funds, according to Lexington Partners. They believe the backdrop for the secondary market continues to remain attractive.
Alternative Allocations with Tony Davidow is a monthly podcast designed to help wealth advisors allocate effectively to alternative investments. We share practical, relatable advice and discuss new investment ideas with leaders in the field.
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 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 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 (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 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
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.
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