Why Did Franklin Templeton Start Late-stage Venture?

Jenny Johnson says Franklin Templeton started late-stage venture because companies wait much longer to go public, so portfolio managers lost the IPO kickers that used to lift performance. Late-stage venture is what used to be underwriting at the IPO.

Franklin Templeton is headquartered in Silicon Valley and has a growth equity team there. A mutual fund or an ETF can hold up to 15% in illiquid assets. The firm does not tend to run the allocation at 15%, because a market move could breach the limit. A 6%, 7%, or 8% holding can fit. The firm began buying late-stage venture deals. Clients who saw the deals asked for a fund. Franklin Templeton now has a venture group. The group often invests in a deal both through the venture fund and with traditional portfolio managers who want late-stage venture exposure.