Why private equity
Private equity demand from investors over the past decade has been fueled by several factors, most notably the opportunity to participate in a growing market and to achieve higher return potential compared to public markets. This asset class plays a vital role in helping companies realize their growth potential.
The global private equity and venture capital market
Private equity has undergone a significant global expansion in the last two decades.
in 2008
in 2025
A range of opportunity across stages of development
Stage 1
Venture Capital
Represents investments in early-stage companies with an idea for a new product or service.
Acting in a mentorship capacity.
Utilizing their network.
Taking board seats.
Assisting with technology development.
The appeal of private equity
- Long-term perspective (e.g., three-to-six years)
- Information advantage
- Strategic plans can stay private
- Partner with company leadership to execute strategic plans to generate organic growth
- Make strategic acquisitions, take board seats and develop new products and service lines
- Depending on PE stage, act as a mentor to help build out management teams
- Private equity firms are critical partners for companies to provide capital
- Leverage their network to identify opportunities
- Provide human capital as businesses mature
Private equity secondaries
Growing Market
The secondaries market has grown more than 3x since 2016, and as primary commitments rise, there could be room for even more growth within the secondaries market.
Annual Secondary Market Volume ($B)
Source: Jeffries Global Secondary Market Review. As of July 2025.
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As the secondary market continues to expand — by deal volume, number of participants, and structural complexity — underwriting has become increasingly nuanced, elevating the importance of experience, relationships and information access, and disciplined asset selection.
Earn CE credit while exploring the opportunities with private equity, evaluate its stages (venture capital, growth equity and buyout) and examine why the current market environment requires a different playbook.
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.
While the evolution of registered funds has helped to democratize access to the private markets, they haven’t replaced the first-generation drawdown structure.
Important Information
Footnotes:
Pitchbook — Q1 2025 Global Private Markets Fundraising Report. Data as of March 31, 2025.
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.
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Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliates companies. Prior to July 7, 2021, Franklin Templeton Distributors, Inc., and Legg Mason Investor Services, LLC served as mutual fund distributors for Franklin Templeton. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE. Reports and other information about the fund are available on the EDGAR Database on the SEC's Internet site at https://www.sec.gov/
Investment Risk:
Private equity investments involve a high degree of risk and are suitable only for investors who can afford to risk the loss of all or substantially all of such investment. Private equity investments and vehicles that invest in them should be considered illiquid and their performance may be volatile. There can be no assurance that any investment will be adequately compensated for risks taken. The timing of profit realization, if any, can be highly uncertain. Investments in private securities and obligations may be thinly traded, have no ready market or exchange and require private negotiation, and which may be restricted as to their transferability. These factors may limit the ability to sell such securities at their fair market value.
1. The “J-curve” is the term commonly used to describe the trajectory of a private equity fund’s cashflows and returns. An important liquidity implication of the J-curve is the need for investors to manage their own liquidity to ensure they can meet capital calls on the front-end of the J-curve.
2. Blind pool risk is derived from investors in a new (“primary”) private equity vintage that are investing in a relatively blind pool of assets. Secondary investors help eliminate this by investing in identifiable assets.