Franklin Templeton Taps Private Credit, Real Estate for Retirement Portfolios

Franklin Templeton is expanding its target-date franchise with a new Retirement Advantage Plus lineup that, for the first time, integrates private market investments directly into workplace retirement plans. 

Allocations to private markets within the series will generally range from 2% to 8% over the glide path. The firm will tap its $74 billion Clarion Partners business for private real estate exposure through the Clarion Partners Real Estate Income Fund and its BSP unit for private credit via the Franklin BSP Lending Fund. Both vehicles offer daily valuation and exclude incentive fees. 

“Plan sponsors and participants are not all looking for the same thing, and innovation means meeting them where they are,” said Steve McKay, head of U.S. Retirement, Insurance & College Savings at Franklin Templeton. “Retirement Advantage Plus adds a new option by providing access to private markets within a 401(k) plan.” 

Franklin Templeton, which manages more than $274 billion in alternative assets, has positioned itself as an early mover in retail and 401(k)-friendly private markets. The strategy builds on its addition to distribution platforms including Corastone, Empower, CAIS Marketplace, and Envestnet. BSP’s direct lending strategy, launched in 2008, now manages $207 million in its Franklin BSP Lending Fund, while Clarion’s $1.3 billion real estate income vehicle provides diversified commercial property exposure.