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      Franklin Templeton CEO Warns of Economic Slowdown Due to Rising Capital Costs

      Jenny Johnson, CEO of Franklin Templeton, has raised concerns regarding the impact of rising capital costs on the broader economy. She noted that banks are becoming increasingly selective in their lending practices, treating capital as 'expensive and precious.' This shift is making borrowing more challenging for companies, pushing them to seek financing from private credit markets instead.

      The current lending environment is influenced by heightened regulatory scrutiny following the collapse of Silicon Valley Bank and elevated interest rates. Franklin Templeton's recent financial results reflect this trend, with the firm reporting $18.4 billion in long-term net inflows for its fiscal third quarter of 2026. Additionally, alternative assets under management reached a record $294.2 billion, indicating a significant shift towards private markets, which have already surpassed annual fundraising targets with $33.0 billion raised in the first three quarters of the fiscal year.

      Johnson's leadership has been marked by a strategic focus on diversifying the firm's offerings beyond traditional mutual funds and fixed income into alternative investments. This approach has contributed to Franklin Templeton's growth in assets under management, which increased from approximately $717 billion in 2018 to about $1.66 trillion in 2026. However, the shift towards private credit markets raises concerns about transparency and liquidity, as these markets are less regulated than traditional lending avenues.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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