Valuation Volatility and 'Volatility Laundering'

Why are Institutional Investors betting big on Private Markets? Franklin Templeton oversees more than $1.6 trillion in assets, with over $260 billion dedicated to private markets. But what’s driving this massive shift — and how are the world’s largest allocators navigating liquidity, valuations, and the next era of private credit? In this episode, I speak with John Ivanac, Head of U.S. Institutional Alternatives at Franklin Templeton, to uncover how the firm is positioning itself for the next decade of alternative investments. We explore the evolution of private markets post-GFC, the consolidation wave among asset owners, and why liquidity, governance, and strategy selection are becoming more critical than ever. John also shares his perspective on Franklin’s acquisition strategy, how they integrate firms like Lexington Partners and Benefit Street Partners, and what it truly means to be a “trusted partner” to LPs in an increasingly complex market.

Highlights:

• Structural Shifts: How regulation and capital formation reshaped private markets post-GFC
• Private Credit Boom: Why a $3.5T market could expand 10x in the next decade
• Secondaries Surge: Inside Franklin’s bet on Lexington Partners and the maturing PE ecosystem
• LP Consolidation: Why institutional allocators are backing fewer but deeper partnerships
• Holistic Partnerships: How Franklin Templeton redefines client alignment beyond products
• Digital Assets Strategy: Why the firm built a 60-person blockchain and crypto investment team
• Retail & Institutional Synergy: The future of democratizing alternatives responsibly
• Culture of Long-Termism: How generational leadership drives Franklin’s innovation mindset

Guest Bio:

John Ivanac is the Head of U.S. Institutional Alternatives at Franklin Templeton, where he focuses on expanding and managing the firm’s suite of Alternative Investment Solutions for institutional investors.

John brings over 20 years of experience in the alternatives space, having previously served as Managing Director, Head of U.S. Consultant Relations at Partners Group and Global Head of Alternatives at BlackRock. He has also held senior leadership roles at The TCW Group, Scoggin Capital, and Barclays.

He holds a J.D. from St. John’s University School of Law and a B.A. from Rutgers University, bringing a deep understanding of both the structural and human dynamics driving today’s institutional capital markets.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

Stay Connected:

X / Twitter: David Weisburd: @dweisburd

LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ John Ivanac: https://www.linkedin.com/in/johnivanac/

Links Franklin Templeton: https://www.franklintempletonglobal.com/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

(0:00) Preview (0:59) Introduction to Franklin Templeton and private investment strategies (2:51) Drivers and opportunities in private market growth (7:15) Institutional investment and volatility in alternatives (14:44) Future outlook and building a significant portfolio (19:02) Acquisitions, strategic focus, and consolidation trends (21:51) Partnering and aligning with asset managers (25:46) Culture and long-term vision in expanding portfolios (28:46) Franklin Templeton's benefits for LPs and manager consolidation (35:58) Digital assets and balancing investor types (39:40) Retail market practices and investor education (45:38) Career advice and patience in investment (47:53) Building credibility, trust, and partnership roles (50:59) Addressing short termism in public markets (51:31) Closing remarks