Qualified investors will be able to access alts strategy
Franklin Templeton Canada has announced the introduction of a private real estate investment strategy available to Canadian qualified investors. The strategy is a product of Clarion Partners, one of the world’s largest real estate investment managers and it will be made accessible through a partnership it iCapital.
According to a press release announcing the offering, the Clarion strategy is part of Franklin Templeton’s $255 billion (USD) alternatives business, which includes alternative credit offerings through Benefit Street Partners, hedge fund strategies from K2 Advisors, and secondary private equity and co-investments via Lexington Partners.
"Franklin Templeton has significantly expanded the breadth and scale of its alternative investment capabilities over the past three years," said Andrew Ashton, Head of Americas (ex-US) Distribution and Chairman of Franklin Templeton Canada, in the press release. "We are excited about expanding our alternative offerings in Canada and will start by bringing Clarion Partners' private real estate strategy to the Canadian market through our partnership with iCapital."
The release claims private real estate assets can be used as an inflation hedge, and has historically performed well in inflationary periods. Typically those periods spur rent increases which can generate higher cash flows. The release cited 10 years of historic data showing that private real estate has improved risk-adjusted returns when added to an equity and bond portfolio.
The goal of these investments, as stated in the release, are to offer durable income and consistent returns, attractive yields relative to “today’s rate environment,” capital appreciation from the increased value of properties, and lower volatility through uncorrelated returns to stocks and bonds.
"Our singular focus on real estate allows us to identify potential opportunities that others may overlook," said Dave Gilbert, CEO, Clarion Partners. "We invest beyond what people typically associate with private real estate, finding that properties such as multi-family apartments, industrial warehouses and life sciences facilities represent attractive investment opportunities."
