Opportunity

Private Real Assets

Building Portfolios with Tangible Value

Private real assets are tangible, physical assets accessible through private market investments. They can represent ownership stakes in physical, income-generating properties and infrastructure essential to modern economies. This asset class combines the potential for attractive risk-adjusted returns with the stability of tangible assets that serve fundamental human needs—from the buildings where we live and work to the critical infrastructure that powers our daily lives.

Private real assets offer several distinctive characteristics that may complement traditional portfolios. These investments can provide:

  • Inflation mitigation through assets with pricing power and contracts often linked to inflation

  • Stable, predictable cash flows from long-term leases or contracts1

  • Portfolio diversification with low to negative correlation to public equity and fixed income markets1

  • Tangible value backed by physical assets with intrinsic worth

Franklin Templeton's private real assets platform encompasses two core asset classes each addressing different investment opportunities:



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Private Real Estate

Equity and debt investment strategies across the risk/return spectrum in various property sectors including industrial, residential, health care, necessity retail, office, and mixed-use.

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Private Infrastructure

Essential assets supporting transportation systems, communication networks, utilities, power generation and distribution, energy storage, and digital infrastructure, such as data centers and fiber networks.

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Footnotes:

1Sources: Bloomberg, NFI-ODCE and NAREIT. Stocks, bonds, publicly traded REITs and private real estate are respectively represented by the S&P 500 Index, Bloomberg U.S. Aggregate Bond Index, FTSE NAREIT All Equity REITs Index and NFI-ODCE. Annualized return, annualized standard deviation and correlations are based on quarterly observations from 4Q2015 to 3Q2025 (data is provided on a 3-month lag). 10-year yield averages are based on historical trailing 12-month observations for dividend yield for stocks and publicly traded REITs, yield-to-worst for bonds and 12-month income for private real estate. Indexes are unmanaged and are not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.


Investment Risk:

All investments involve risks, including possible loss of principal. Diversification does not guarantee a profit or protect against a loss.
Real Asset Investments: An investment in real asset projects can be exposed to numerous risks that may not offer recourse to the project sponsor and ultimately investors. For example, delays in obtaining necessary permits or a shift in political or public sentiment could hinder progress or cause a project to terminate. Other risks that can impact a real assets investment include, but are not limited to: construction delays, environmental concerns, contract or labor disputes, or financial/default risks from a deterioration in a sponsor’s credit. Additionally, the securities tied to such projects may be private in nature which increases the illiquid nature of such investment and reduce visibility into information about the investment. Private securities would not be listed on a public exchange, and no secondary market would be expected to develop.

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