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Retirement Portfolios Positioned for Private Credit Growth

Retirement accounts represent an optimal vehicle for private credit and equity allocations, according to Franklin Templeton leadership. These investments require extended holding periods due to their illiquid nature. Chief Executive Officer Jenny Johnson emphasized that retirement funds possess the necessary time horizon for such exposure. "You can't get your money for 10 years, so you really need to be able to withstand the illiquidity," Johnson noted. The structural mismatch between liquid portfolios and illiquid private credit makes retirement accounts particularly well-suited for such allocations. Institutional investors managing long-term retirement obligations can leverage extended investment timelines to capture private credit returns without facing redemption pressures.