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.