Jenny Johnson, CEO of the $1.7 trillion asset manager Franklin Templeton, stated that banks are increasingly cautious due to higher interest rates and a stricter regulatory environment. This shift forces companies to seek financing in private credit markets.
Franklin Templeton reported $18.4 billion in long-term net inflows for the fiscal third quarter of 2026. Alternative assets under management reached a record $294.2 billion, while private markets fundraising hit $33.0 billion for the first nine months of the fiscal year.
The firm's total long-term net inflows for the first three quarters of fiscal 2026 reached $63.3 billion. Total assets under management grew from approximately $717 billion in 2018 to about $1.66 trillion in 2026, largely through acquisitions and expansion into alternative investments.
Johnson noted that while private lenders are filling the void left by traditional banks, these markets are less transparent and liquid. This migration of credit risk to sectors with less regulatory oversight presents potential challenges for the financial system.
