Welcome
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.
Our alternative investment capabilities
At Franklin Templeton, our extensive asset class coverage ensures that we have the flexibility and expertise to provide tailored solutions for our clients’ diverse financial needs.
Private equity
Private equity involves investing in privately held companies that aren’t listed on the stock market.
These investments can range from startups to established businesses, offering opportunities for growth at various stages.
Private credit
Private credit involves investing in various types of debt provided directly to companies or individuals, bypassing traditional banks.
This can offer unique opportunities for income and diversification.
Venture capital
Venture capital focuses on early-stage, high-growth companies by investing for equity ownership.
This approach supports rapid growth and aims to make money when these companies are bought or go public, taking advantage of their innovation and substantial expansion potential.
Real estate
Real estate involves investing in various properties such as:
residential homes, commercial buildings, land, and Real Estate Investment Trusts (REITs). This asset class offers stability, income and potential long-term growth, appealing to investors looking to diversify in the dynamic property market.
Hedged strategies
Hedged strategies use various techniques to reduce overall risk in a portfolio.
These methods include derivatives, short selling* and alternative investments, providing a diversified and resilient approach to investing.
Products corresponding to each capability may not be available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton representative before making any plans to invest.
*Short selling is a trading strategy where investors speculate on a stock’s decline. They are selling borrowed stocks which they anticipate will decrease in value, with the plan to repurchase them once the price has fallen.
Our family of alternative investment specialists
At Franklin Templeton, we are dedicated to expanding our alternative investment capabilities by acquiring and partnering with independent specialist investment managers. Each of these managers possesses deep expertise in a specific asset class with extensive experience managing assets for some of the world's largest institutions. This approach enables us to offer our clients access to innovative and institutional-quality products.
Founded
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.
Founded
1984Franklin Real Asset Advisors provides global expertise in private real estate funds, including core, non-core and impact investing strategies.
Founded
2008/2002Acquired by FT
Acquired by FT 2019/2022BSP-Alcentra is one of the largest alternative credit asset managers globally, utilising a multi-strategy approach targeting attractive opportunities in the global credit markets.
Founded
1994Acquired by FT
2022Lexington Partners is one of the world's largest managers of secondary private equity and co-investment funds.
Founded
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 founded
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.
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.
Hypothetical Traditional Portfolio
Risk and Return
12/31/2005 - 12/31/2024
11.4%
Annualised risk1
6.5%
Annualised return
224.5%
Cumulative
return2
Hypothetical Portfolio with 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.
Contact us
Please contact us for any questions on our products or services.
By email
Our knowledge hub
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.
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.
Unlocking opportunities: Understanding the growing secondary market
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.
2024 Alternative Investment Outlook: Challenges create opportunities
Many of the same issues that impact traditional investments also impact alternative investments. Explore our outlook for private credit, private equity, real estate, and hedge funds.
Glossary
Private credit/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.
Hedge 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. Hedge 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.
- 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.
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.