Why Is Franklin Templeton Investing in SpaceX and Anthropic?

Jenny Johnson says Franklin Templeton invests in SpaceX and Anthropic through late-stage venture, because companies wait much longer to go public and the IPO kickers that used to lift performance are gone.

She confirms the SpaceX exposure. When Molly O'Shea names Anthropic and a bunch of other companies, she agrees. Late-stage venture is what IPO underwriting used to be. A mutual fund or an ETF can hold up to 15% in illiquid assets. Franklin Templeton does not tend to run that allocation at 15%, because a market move could breach the limit, and a 6%, 7%, or 8% stake can fit. Clients who saw the deals asked for a fund, so the firm now has a venture group that often invests both through the venture fund and with traditional portfolio managers.

The access comes from being headquartered in Silicon Valley. The team knows the entrepreneurs and the rest of the venture community. Their kids go to school with those people, who are neighbors, and knowing them is how Franklin Templeton gets into the deals.