Franklin Templeton Launches Private Market Portfolio Options with Corastone
Asset manager Franklin Templeton has rolled out a new private markets model in collaboration with blockchain infrastructure platform Corastone, which is aimed at helping financial advisors provide tailored options for clients’ portfolios.
The multi-asset private market models provide clients and advisors with exposure to underlying private market funds and incorporate Corastone’s offerings to assist with rebalancing, portfolio administration, subscription processing, and ongoing management.
The models include Franklin’s investment capabilities across alternatives, including from subsidiaries Lexington Partners for co-investments and private equity secondaries, Clarion Partners for real estate, and Benefit Street Partners for private credit, Franklin Templeton said.
The new portfolios utilize a single-subscription, SMA structure that allows advisors to give clients diversified exposure to private market assets, which include private equity, private credit, and real estate.
“By supporting a single-ticket, SMA-style structure, these model portfolios are designed to help reduce operational complexity and improve scalability, while enabling advisors to implement diversified private market exposure within a professionally managed portfolio framework, George Stephan, COO of Global Wealth Management Private Markets at Franklin Templeton, said.
The new portfolios come shortly after Franklin Templeton expanded its target-date franchise with a new Retirement Advantage Plus lineup that integrates private market investments directly into workplace retirement plans.
The firm tapped its Clarion Partners unit 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.
Corastone, a digital infrastructure that was built on a permissioned blockchain network, connects wealth managers and fund administrators with a wide range of access to private market investments.
Franklin Templeton’s alternatives division represents about 16% of its overall business, which manages $280 billion in assets. The firm manages $1.74 trillion in total assets as of April.