Franklin Templeton has introduced Private Markets Model Portfolios in partnership with Corastone, a digital infrastructure provider and permissioned blockchain network focused on private market investment processing.
The new portfolios are aimed at helping financial advisers add private market assets to client portfolios through a managed portfolio structure.
The offering applies the model portfolio approach to private markets through a single-subscription, SMA-style format that gives multi-asset exposure and reduces the minimum investment required for each fund.
Franklin Templeton’s investment capabilities across public and private markets are combined with Corastone’s technology in the new framework.
Corastone co-founder and CEO Rashad Kurbanov commented: “Private markets have historically been difficult to scale across advisor-managed model portfolios due to operational complexity and fragmented workflows.
“This solution combines Franklin Templeton’s investment capabilities with Corastone’s infrastructure, making it easier for advisors to implement and manage diversified private market allocations within client portfolios.”
The arrangement is intended to simplify several operational processes tied to private market investing, including subscriptions, rebalancing, portfolio administration and ongoing oversight, while preserving transparency and direct ownership of the underlying funds.
Under the structure, clients invest directly in the private market funds held in the portfolio instead of using pooled fund-of-funds vehicles.
Franklin Templeton’s private markets platform includes a number of specialist investment managers. These include Lexington Partners in private equity secondaries and co-investments, Clarion Partners in private real estate, and Benefit Street Partners in private credit.
The platform also includes Franklin Ventures, hedged strategies and digital asset capabilities, giving investors access to a range of alternative asset classes.
Franklin Templeton global wealth management private markets chief operating officer George Stephan commented: “This launch reflects the evolution of private markets in client portfolios and the need for structures that allow advisors to implement those allocations efficiently.
“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.”
Last year, Franklin Templeton acquired a majority stake in London-based private credit manager Apera Asset Management.
