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Franklin Templeton CEO pushes back on “semiliquid” fund label
The $1.8 trillion private credit market is seeing investor outflows from semiliquid, or evergreen, products, prompting debate over whether the labeling and investor education are adequate.
For most of 2026, wealthy investors have been trying to cash out of “semiliquid” funds, creating what the article describes as the first major stress test for products that make up a large share of the $1.8 trillion private credit market, according to Yahoo Finance.
The outflows have put alternative fund managers, including Blue Owl Capital and Blackstone, on the defensive, even as some industry figures argue the vehicles are intentionally designed around limited liquidity and generate important fee revenue for the alternatives industry.
The debate has also focused on whether investors and wealth intermediaries are sufficiently informed about the limited liquidity rules that govern evergreen, semiliquid products that are widely sold as alternatives to traditional funds.
Franklin Templeton CEO Jenny Johnson said private markets are illiquid and investors should understand they are investing in private credit that cannot be redeemed all at once, while EQT CEO Per Franzén predicted the term “semiliquid” will fade away, with the article noting surveys from Morningstar and others showing registered investment advisers often have limited familiarity with semiliquid structures.