Why Private Equity?

Why Franklin Templeton for private equity investing? With a proven track record and extensive reach across diverse markets, Franklin Templeton offers a wealth of expertise and opportunities in private equity. We can support you to navigate the complexities of the private equity landscape, ensuring you can make the most of your investments.
US$83 bn
Private equity assets under management
20+
Years investing in private equity
16
Global locations
Data as of 30/06/2025.

A range of opportunities across stages of development

Private equity offers a wide range of opportunities across different stages of a company’s development from early-stage to mature buyouts. By diversifying private equity investments across these stages, you can tailor your portfolio to capture specific growth trends and market dynamics. This approach may help manage risk while maximising the potential for high returns.

Least mature

Venture capital

Growth equity

Most mature

Buyout

Risk

Highest

Lowest

Stage 1

Venture capital

Represents investments in early-stage companies with an idea for a new product or service. Private equity firms are essential partners in turning innovative ideas into viable, high-growth businesses.

Acting in a mentorship capacity.

Utilising their network.

Taking board seats.

Assisting with technology development.

Stage 2

Growth equity

Focus on established companies with a proven business model that are fast-growing. Private equity firms provide capital, offering both financial resources and strategic guidance.

Executing strategic growth initiatives.

Making strategic acquisitions.

Taking board seats without taking control of company or having heavy involvement.

Stage 3

Buyouts

Buyouts are the largest, most mature single strategy in all private markets and constitute a spectrum of transactions varying in leverage, size and strategies. The private equity firm plays a crucial and active role in acquiring and transforming established companies.

Leveraged Buyout (LBO)-Based on financial engineering

Portfolio companies with steady cash flows can support larger amounts of debt
Corporate tax advantages
Operational benefits

Equity Buyout-Generating higher potential profits from growth, expansion or transformation.

Expanding distribution and product lines
Improving processes
Creating synergies with the PE fund’s other portfolio companies

The appeal of private equity

The appeal of private equity investing lies in its long-term approach to capitalising new businesses, developing innovative business models and restructuring distressed businesses. Due to its lower correlation* to public equity funds, they are a desirable diversifier in investment portfolios.

Strategy execution

Private equity firms excel at executing strategic plans that drive growth and profitability. By leveraging their expertise in operational improvements, market expansion and cost management, they can significantly enhance a company’s value.

Value creation

Private equity firms focus on active management. This can include restructuring operations, optimising capital structures or making strategic acquisitions, all aimed at increasing the overall enterprise value.

Availability of capital

Private equity provides companies with substantial capital that might not be available through traditional financing channels. This capital injection supports growth initiatives, innovation and scaling, ultimately leading to higher potential returns for investors.

*Correlation is a statistic that measures the degree to which two securities move in relation to each other.

Private equity secondaries

Private equity secondaries are a rapidly growing segment of the broader private equity market and an important source of liquidity for investors. Investors in secondaries are purchasing primary interests from large institutional investors like pensions funds and foundations and endowments when they need liquidity for rebalancing or strategic initiatives, often at attractive pricing.

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 January 2025.

Mitigate the J-curve^**

Unlike primary funds, secondary funds buy interests in funds that have mostly completed their investment periods, containing portfolio companies that are already generating cash flow.

As a result, secondary funds typically return investor capital sooner because they purchase stakes at later stages in the private equity lifecycle.

For illustration purposes only.

Ability to buy proven assets

By purchasing interests in private investment funds when most or all of their capital has been invested, secondary funds reduce the blind pool risk^* associated with primary fund investing.

Why secondaries?

Private equity secondaries are a rapidly growing segment of the private equity market and may provide an important source of liquidity for investors. In secondary investments, you purchase interests from large institutional investors, such as pension funds, foundations and endowments, when they need liquidity for rebalancing or strategic initiatives. These opportunities often come at compelling prices.

Broad diversification

Diversified portfolios by sponsor, fund, sector, strategy, geography, industry, company and vintage year, which can potentially dampen volatility

Potential for earlier cash returns

By acquiring interests in established private investment funds, secondary funds generally receive earlier and more frequent distributions than a traditional primary fund

Reduced investment risk*

By purchasing interests in private investment funds when most or all of their capital has been invested, the blind pool risk associated with primary fund investing is reduced

Mitigation of primary J-curve**

By purchasing assets closer to their harvest stage and at a discount, investors can mitigate the J-curve effect associated with primary fund investing

Insight

Private equity secondaries: A primary allocation in an evergreen private equity portfolio

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.

Read now

Insight

Private Markets Insights: Not a simple open and closed case

Evergreen and closed-ended / drawdown funds offer different paths to private markets - understanding their strengths can help investors optimise allocations.

Read now

Insight

What do tariffs mean for commercial real estate and CRE debt?

Benefit Street Partners believes that although stock market volatility is unsettling, it is not a cause for concern in the CRE sector. Instead, we should expect increased demand for CRE debt investments over the coming months and quarters.

Read now

Insight

Unlocking opportunities: Understanding the growing secondary market

The global secondary market has grown over the past three decades primarily because of the increased supply of capital committed to private investment funds, according to Lexington Partners. They believe the backdrop for the secondary market continues to remain attractive.

Read now

Go to knowledge hub

 About Lexington Partners 
 Learn more 
 About Franklin Venture Partners 
 Learn more 
 Why Franklin Templeton for alternative investing? 
 Learn More 

Glossary

Private equity:

funds typically invest in equity capital that is not publicly available. Instead, the funds take direct ownership in private companies. Private Equity has the potential to provide above-market returns, with greater control, reduced liquidity and greater diversification, than traditional public markets.

Venture capital:

is a form of private equity that investors provide to start-up companies and small business that exhibit high growth potential.

Correlation:

is a statistical measure of the relationship between two sets of data. When asset prices move together, they are described as positively correlated; when they move opposite to each other, the correlation is described as negative or inverse. If price movements have no relationship to each other, they are described as uncorrelated.

Diversification:

is a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk.

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.

*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.

**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.

Important Legal Information

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

This website is for information only and does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. This website may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

Any research and analysis contained in this document 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. 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. Any views expressed are the views of the fund manager as of the date of this document and do not constitute investment advice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole.

There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from the use of any information, opinion or estimate herein.

The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested.

Past performance is not necessarily indicative nor a guarantee of future performance of the Fund. Subscriptions may only be made on the basis of the most recent Prospectus and Product Highlights Sheet which is available at Templeton Asset Management Ltd or authorised distributors of the Fund. Potential investors should read the details of the Prospectus and Product Highlights Sheet before deciding to subscribe for or purchase the Fund. This shall not be construed as the making of any offer or invitation to anyone in any jurisdiction in which such offer is not authorised or in which the person making such offer is not qualified to do so or to anyone to whom it is unlawful to make such an offer.

Investors may wish to seek advice from a financial adviser before making a commitment to invest in shares of the Fund. In the event an investor chooses not to seek advice from a financial adviser, he/she should consider whether the Fund is suitable for him/her.

Issued by Templeton Asset Management Ltd. Registration Number (UEN) 199205211E.

Why Franklin Templeton for private equity investing?