Knowledge hub
A curated assortment of our experts’ latest thinking to offer fresh perspectives, unique solutions, and an advanced understanding of private markets
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Building portfolios with private markets
Finding opportunities in today’s market
Our learning platform offers you a comprehensive curriculum to help expand your expertise across the private markets landscape. Built to meet you where you are, your learning experience can take many forms from live webinars to online learning at your own pace. Courses and webinars are around 50 minutes in length and are free, but you will need to sign in or register to access the content.
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Alternative Allocations with Tony Davidow is a monthly podcast designed to help wealth advisors allocate effectively to private markets investments. We share practical, relatable advice and discuss new investment ideas with leaders in the field.
Myth Busters
1 - Private Market investments are only for Institutions and Family Offices.
This used to be the case - but with product innovation, and a willingness of institutional-caliber managers to bring accredited investor products to the market - these once elusive investments are now available to a broader group of investors at lower minimums and more flexible features.
2 - It is cumbersome to open and fund a Private Market investment account.
While it is still more complex than dropping a ticket, the process for opening and funding a Private Markets account has been streamlined and automated, by firms like iCapital and CAIS. These FinTech firms have seized the opportunity to improve the client experience.
3 - I can use public market equivalents to achieve the same results as private markets.
While public market equivalents (PMEs) may have certain common traits as private markets, private market investments generally exhibit dramatically different results than the PME. Private equity and private credit have historically delivered an illiquidity premium relative to their traditional counterparts2; private real estate represents a diverse set of opportunities, and has historically delivered differentiated returns, risk, and income characteristics relative to public REITs3; private and listed infrastructure represent different opportunity sets; and natural resources are different than commodities and equity-oriented surrogates (gold miners, manufacturers, food processing companies, etc.).
4 - Investors need access to liquid investments.
While investors typically need some liquidity, they don’t always need their entire portfolio liquid. In fact, research has shown that there can often be an illiquidity premium4 – the excess return for locking up illiquid assets (private equity and private credit) for an extended period of time. This allows a PE manager ample time to execute their strategy and harvest potential returns. It may also instill a level of discipline in holding onto investments during volatile periods.
Important Information
1. CE credit is only available for participants attending the live webinar for a minimum of 50 minutes or completing the eLearning course. Franklin Templeton will email eligible participants a certificate of completion and will submit CFP attendance directly to the CFP Board. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP certification mark in the US, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CIMA, CPWA and RMA are registered certification marks of the Investments & Wealth Institute. For more information about the Institute and the certifications, please visit investmentsandwealth.org
2. Source: The Illiquidity Premium and the Market for Private Assets | Portfolio for the Future | CAIA.
3. Source: Clarion Partners Investment Research, NCREIF, REIT.com, S&P, Bloomberg, 2022Q2 Note: Past performance is not indicative of future results. Please see the important disclosures at the end of the presentation. Valuations and incomes may change more rapidly and significantly than under standard market conditions.
4. Source: The Illiquidity Premium and the Market for Private Assets | Portfolio for the Future | CAIA.
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.
All investments involve risks, including the possible loss of principal.
Investments in alternative investment strategies are complex and speculative investments, entail significant risk and should not be considered a complete investment program.
Depending on the product invested in, an investment in alternative investments may provide for only limited liquidity and is suitable only for persons who can afford to lose the entire amount of their investment. An investment strategy focused primarily on privately held companies presents certain challenges and involves incremental risks as opposed to investments in public companies, such as dealing with the lack of available information about these companies as well as their general lack of liquidity.
Any research and analysis contained in this material has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. The mention of any individual securities should neither constitute nor be construed as a recommendation to purchase, hold or sell any securities, and the information provided regarding such individual securities (if any) is not a sufficient basis upon which to make an investment decision. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.
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