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SoFi has partnered with Templum to bring investors access to premium private investment opportunities. SoFi and Templum partnership brings alternative investment opportunities to a new generation of investors New York, December 4, 2024 – SoFi, the all-in-one digital personal finance company, and Templum, which operates Templum One, a purpose-built platform for seamlessly accessing and transacting in private alternatives, have gone live with an exclusive set of funds for investors.   The three funds available to SoFi investors with today’s launch include the Cosmos Fund, a special purpose vehicle offering exposure solely to SpaceX, as well as the Pomona Investment Fund and the StepStone Private Markets Fund. The funds are available to investors on SoFi via the Templum One private alternatives ecosystem.   The partnership between SoFi and Templum was first announced in May. The collaboration underscores SoFi and Templum’s shared mission to democratize access to private markets, providing investors with the tools and resources needed to diversify portfolios with alternative assets.   "These exclusive private alternative asset offerings represent a significant milestone in our partnership with SoFi, opening the door for their members to access a growing universe of investment opportunities once beyond reach for most individuals," said Chris Pallotta, CEO and Founder of Templum. "With Templum’s advanced technology, compliance-driven framework, and deep expertise in alternative assets, we’re making some of the most coveted private investments accessible to a new generation of investors. Through Templum One, we offer a diverse and continually expanding selection of sought-after private assets, empowering investors to diversify and enhance their portfolios. Together, we’re transforming access to private markets and shaping the future of investing."   Templum eliminates manual, fragmented processes, delivering a seamless experience that mirrors the simplicity and familiarity of public market investing – making it as effortless to invest in private market opportunities as it is to buy shares of Apple.   Alternative assets have become an essential part of wealth-building strategies, with global alternative assets under management expected to reach $60 trillion by 2032 , up from $16.3 trillion today . Despite this growth, access for individual investors has historically been limited. The partnership between SoFi and Templum marks a significant milestone in closing that gap.   With capabilities designed to enhance distribution, facilitate transactions, and lower entry barriers, Templum is delivering a true, one-stop shop with high-value opportunities, operational efficiencies, seamless execution, enhanced liquidity, and secondary trading through robust, scalable solutions. Templum One connects issuers and asset managers to new wealth channels while automating such processes as onboarding, risk management, and capital calls.   ###   About Templum     Templum’s scalable infrastructure solutions are transforming access, processes and investment choice in alternative assets, making them as easy to invest in as public markets. Templum operates three core business lines: Templum One is an innovative global  ecosystem for private markets that connects alternative and private market issuers with a growing network of partners who want to offer their end investors access to the world’s most sought-after private assets.  Templum Marketplace Solutions enable private issuers and asset managers to automate processes, integrate siloed operations, and accelerate time-to-market.  Templum Applications Suite provides essential solutions to optimize back office and operational processes, saving businesses time, money and resources.   All securities offered by Templum Markets LLC., a wholly owned broker-dealer and Alternative Trading System (ATS) subsidiary of Templum, Inc., which is approved to operate in 53 U.S. states and territories. For more information, please visit  www.templuminc.com .   Sales Inquiries Contact sales@templuminc.com      Templum Media Contact marketing@templuminc.com   About SoFi   About SoFi SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps 9.4 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app . SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.   SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings , SoFi Invest , SoFi Credit Card , SoFi Protect , and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.   SoFi Media Contact PR@sofi.org

Templum and SoFi launch new class of Cosmos Fund, with sole exposure to AI leader Anthropic SoFi and Templum expand partnership Templum, which operates Templum One – the marketplace for private alternatives – is expanding its partnership with SoFi with the launch of a new class of the Cosmos Fund, with sole exposure to Anthropic , one of the world’s leading artificial intelligence (AI) start-ups[1]. This next phase of collaboration reflects a shared mission to deliver exclusive investment opportunities to a broader and more diverse range of investors. Building on the overwhelming response to the initial class of the Cosmos Fund – which offered sole exposure to SpaceX and was  7x oversubscribed in just two weeks – this latest offering underscores the accelerating demand for institutional-caliber investments among self-directed investors. This unique opportunity will be accessible through SoFi on Templum One from April 22 to May 8, 2025. AI has emerged as a generational technological innovation, attracting record-breaking investments and reshaping global industries . In 2024 alone, venture capital investments in AI-driven companies increased five-fold, with AI deals accounting for over 60% of total VC-backed investments, according to EY . Anthropic, whose ChatGPT rival Claude is being used by Amazon to provide advanced AI capabilities to its next generation Alexa+, recently raised $3.5 billion giving it a valuation of $61.5 billion . The latest round was led by Lightspeed Venture Partners, with participation from Bessemer Venture Partners, Cisco Investments, D1 Capital Partners, Fidelity Management & Research Company, General Catalyst, Jane Street, Menlo Ventures and Salesforce Ventures, among other new and existing investors such as Amazon and Google. Dario Amodei, co-founder and CEO of Anthropic, was recently recognized as one of  TIME’s 100 Most Influential People in AI . His vision for AI includes transformative impacts on sectors such as healthcare, finance, and governance, emphasizing the potential for AI to address complex challenges and drive significant societal progress. Businesses across industries are turning to Claude to transform their operations – including global corporations like Zoom, Snowflake, Pfizer, Thomson Reuters, Novo Nordisk, as well as Bridgewater and the Boston Consulting Group[2&3]. In addition to the Anthropic class, private alternative assets available to eligible SoFi investors through Templum One include: Pomona Investment Fund – The Pomona Investment Fund is an evergreen fund that has an annualized return rate of 13.05% since inception in May 2015, and $1.9B in AUM as of January 1, 2025[ 4 ] . The fund uses a diversified investment strategy across multiple sectors, primarily acquiring positions in other private equity funds on the secondary market or through strategic co-investments directly in private companies. Investors in the fund have the opportunity to sell their holding each quarter through the fund’s redemption program, allowing investors to choose the investment horizon that is right for them. StepStone Private Markets Fund – The StepStone Private Markets Fund has produced an annualized return of 20.65% since inception in October 2020 and has $4.2B in AUM as of February 2025[5]. The fund invests inprivate equity, real assets, and private debt through a globally focused portfolio. Investors can obtain liquidity through the fund’s redemption program, empowering investors to manage the duration of their investment. “SoFi’s expansion into alternative investments, like private market funds, has broken down barriers for retail investors to access potentially high value opportunities,” said Anthony Noto, CEO of SoFi . “Retail investors are interested in investing in today’s most valuable privately held companies, but access has long been dominated by ultra-high-net-worth individuals and large institutions. SoFi is proud to be one of the few platforms that has unlocked these highly sought-after investment opportunities for our members.” “AI is reshaping industries at an unprecedented pace, and we are excited to build on our partnership with SoFi to offer investors access to one of the most promising sectors of our time,” added Christopher Pallotta, CEO and founder of Templum . “The Anthropic Class represents a unique opportunity for investors to gain exposure to Anthropic, a leader in AI, through a seamless and accessible investment platform.” By pairing SoFi’s broad reach with Templum’s advanced technology and industry expertise, this alliance continues to break down traditional barriers, driving broader participation and reshaping how individuals engage with privately held shares and alternative investments. --END--   [1] Inside the Funding Frenzy at Anthropic, One of A.I.’s Hottest Start-Ups – The New York Times [2] Anthropic Raises Series E at $61.5B Post-Money Valuation [3] Forbes 2024 AI 50 List – Top Artificial Intelligence Startups [4] See Pomona Investment Fund Fact Sheet 4Q24 . Investors may not be eligible for all share classes.  [5] See StepStone Private Markets – February 2025 . Investors may not be eligible for all share classes.    About Templum   Templum is redefining how investors access private markets – making alternative assets as intuitive and seamless as investing in public equities. Our cutting-edge technology integrates directly with advisors, brokers, custodians, fund administrators, transfer agents, and other key market participants through APIs or white-labeled solutions, enabling fully connected and intelligent workflows for frictionless primary and secondary transactions across any private asset class. Faster, more scalable, and more cost-effective than anything else in the market today, Templum is the infrastructure powering the next generation of private market investing. At the core of our offering is  Templum One – our flagship marketplace that connects investors with top-tier fund managers and premium private investments. For platforms looking to build or scale,  Templum-as-a-Service  provides modular solutions that streamline operations and eliminate everyday frictions. To support liquidity, Templum also offers multiple secondary trading solutions – including an automated  Alternative Trading System (ATS)  and  Qualified Matching Service (QMS) – delivering compliant, efficient exits for a broad range of private investments. Our platform is designed for flexibility, with modular deployments that can adapt to participants’ unique needs. Templum offers tailored solutions that meet your goals today – and scale with you tomorrow. All securities offered by Templum Markets LLC, a wholly owned broker-dealer and Alternative Trading System (ATS) subsidiary of Templum, Inc., which is approved to operate in 53 U.S. states and territories. For more information, please visit  www.templuminc.com . Investor Contact:   sales@templuminc.com    Templum Media Contact: marketing@templuminc.com   About SoFi SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps over 10 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence. SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps. ©2025 SoFi Technologies, Inc. All rights reserved. SoFi Media Contact: PR@sofi.org

Templum and FusionIQ Partner to Broaden Access Are wealth management platforms prepared to meet the ask from investors for alternatives diversification? More specifically, how will their clients (RIAs and others) have enough time to service their existing clients let alone scale to meet the market demand? Considering the cost and duration for advancing an existing, specialized roadmap, many technology platforms are seeking out technology partnerships that can be deployed or embedded seamlessly into their own.  For FusionIQ , the answer was a technology partnership with Templum . According to the survey by Alternative’s Watch and Templum , demand for alternative investments is rising, but operational headaches, disconnected workflows, and poor infrastructure limit participation. Nearly 70% of survey respondents are planning to invest in alternatives in the next 18 months. FusionIQ needed to support their clients who wanted to scale their practices, specifically RIAs and partners, so they began a full-scale search for both a regulatory and investment solution. They were looking for a partner, but one who had a deep understanding of the market and a technology lens who would help automate investment lifecycle workflows and more. FusionIQ approached us, and through our due diligence, found a fit with Templum One's turnkey solutions. They chose Templum One’s technology suite because it was purpose-built to modernize alternatives investing.   FusionIQ will be deploying Templum’s end-to-end system. Their partners on the FusionIQ platform will benefit from Templum One’s sleek UI and automated technology workflows. The results are time savings that provide a space for RIAs and other partners to interact with existing and future clients. FusionIQ's complete investment platform makes it easy for clients to become independent, digital wealth leaders. Coupled with the technology capabilities of the Templum platform, their customers can count on elevating their clients’ experiences. The partnership is reflective of the traction in the market for upgrading existing technology to meet the market’s demand. In this case, it’s for private markets.   Learn more .

AI is revolutionizing industries, attracting record-breaking investments, and reshaping the financial landscape. With venture capital and private equity firms pouring billions into AI-driven startups, Templum believes this surge presents both unprecedented opportunities and unique challenges for investors looking to capitalize on the next wave of technological innovation. Growth meets opportunity through AI investments As artificial intelligence (AI) reshapes industries at an unprecedented pace, experts are increasingly focused on its potential to revolutionize everything from healthcare and finance to governance.   Dario Amodei, co-founder and CEO of Anthropic, who was recently recognized as one of TIME’s 100 Most Influential People in AI and has a track record of leading breakthroughs at Google Brain and OpenAI, where he led development of influential language models like GPT-2 and GPT-3, underscores AI’s potential in his recent essay,  " Machines of Loving Grace ."     Amodei envisions a future in which AI profoundly enhances society as a whole. He anticipates that advanced AI systems will transform sectors such as biology and physical health, neuroscience and mental health, economic development and poverty, peace and governance, and work and meaning, leading to unprecedented improvements in quality of life. Amodei – whose firm places a strong emphasis on AI safety and research – suggests that, with proper management of associated risks, AI has the potential to address complex challenges and drive significant societal progress. This outlook underscores the vast investment potential within the AI landscape. To date, AI has experienced remarkable growth, with venture capital (VC) investments in AI-driven companies increasing fivefold since the end of 2023. In the final quarter of 2024, AI deals accounted for over 60% of total investments in VC-backed companies, contributing to a 57% rise in overall VC investment of $62.2 billion from $39.6 billion the previous quarter, according to EY. For the year, total investment in VC-backed companies increased 27% from 2023 to more than $180 billion, said EY. Notably, 2024 witnessed several substantial funding rounds for AI startups. According to Crunchbase , the year was marked by numerous nine- and ten-figure investments in AI companies , highlighting the sector’s prominence in the venture landscape. Meanwhile, four large AI deals accounted for $26.6 billion of total Q4 2024 investments, Crunchbase found, further reinforcing investor confidence. The largest startup funding deals it reported for 2024 are: 1.        Databricks – which helps companies process, analyze and manage large amounts of data – raised $10 billion at a $62 billion valuation 2.         OpenAI – creator of ChatGPT – raised $6.6 billion at a valuation of $157 billion 3.         xAI – Elon Musk’s generative AI startup with ChatGPT competitor, Grok, – raised $6 billion at a valuation of $24 billion in May 2024, and another $6 billion in November for a valuation of $50 billion 4.         Waymo – an autonomous vehicle company – raised $5.6 billion at a valuation of $45 billion 5.         Anthropic – a ChatGPT rival – raised $4 billion and is currently valued at $61.5 billion after a recent $3.5 billion raise 6.         Anduril Industries – a defense tech company – raised $1.5 billion for a valuation of $14 billion 7.         G42 (tied) – an AI holding company – raised $1.5 billion 8.         CoreWeave (tied) – an AI cloud infrastructure startup – raised $1.1 billion for a valuation of $19 billion. 9.         Wayve – a self-driving car startup – raised $1.1 billion   In addition to those noted above, a significant $2 billion construction loan was recently secured for a 100-acre AI data center in Utah, highlighting the growing demand for AI infrastructure. In the entertainment sector, Sony Music has backed Vermillio , an AI rights startup, to streamline licensing and rights management using AI technologies. Further, Microsoft announced a $20 billion investment to expand its AI capabilities, focusing on integrating AI tools into its cloud services and business applications. Similarly, Nvidia continues to lead in AI hardware, with its latest H100 GPUs being rapidly adopted by data centers worldwide to accelerate AI workloads.   Meanwhile, in a landmark move underscoring the United States' commitment to advancing AI, President Trump recently announced a $100 billion investment by Taiwan Semiconductor Manufacturing Company (TSMC) to expand its operations in the US. This investment, the largest foreign direct investment in US history , will fund the construction of five cutting-edge semiconductor fabrication facilities in Arizona, creating thousands of jobs and bolstering the domestic production of advanced AI chips, according to the White House. The scale and frequency of AI funding have also led to a proliferation of new AI-driven startups spanning diverse applications such as healthcare, finance, and autonomous systems. Venture-backed AI companies are rapidly innovating in areas like natural language processing, robotics, cybersecurity, and predictive analytics, demonstrating AI’s versatility across industries. The increased focus on AI infrastructure, such as specialized chips, cloud-based AI solutions, and scalable machine learning models, is further fueling interest in long-term investment opportunities. Private Equity’s Role in AI Growth Bain & Company estimates that the market for AI products and services could reach between $780 billion and $990 billion by 2027 , reflecting annual growth rates of 40% to 55% over the next three years. Many private equity firms are taking a long-term approach, focusing on AI-driven business transformations, operational efficiency improvements, and the expansion of AI applications in traditional sectors, according to Bain. Source: Bain & Company Identifying Opportunities As of early 2024, the  deep learning  segment was the market leader, holding a 37.4% share . This dominance is largely due to deep learning's capacity to process vast amounts of data, enabling advancements in natural language processing, computer vision, and autonomous systems. Notably, the  machine learning  segment is projected to experience rapid growth, with an anticipated compound annual growth rate (CAGR) of 34.62% from 2023 to 2028 . Additionally, the  generative AI  sector has seen significant momentum, particularly in marketing and sales functions, where adoption has more than doubled since 2023 .  The Future of AI Investing While short-term volatility and regulatory concerns are present, AI is widely regarded as having significant long-term potential. The industry’s rapid innovation cycle combined with increasing enterprise adoption and continuous breakthroughs in machine learning, suggest that AI investments will continue to be a dominant force amongst investors. While the AI investment landscape is marked by rapid growth, substantial capital inflows, and breakthrough advancements across multiple sectors, there are challenges. These include navigating high valuations, limited liquidity, and intense competition to access quality deals. As the market continues to expand, technology providers such as Templum are playing a pivotal role in democratizing access to AI investment opportunities, making it possible for smaller investors to participate in an arena that has been dominated by large institutions and ultra-high-net-worth individuals. This shift is opening new doors for a broader range of investors to capitalize on AI's substantial long-term potential, transforming how and where investment opportunities are accessed. As AI continues to reshape industries, platforms like Templum are ensuring that the benefits of this transformative technology are accessible to more investors than ever before. Reach out to our team to find out more about AI-focused investment opportunities available through Templum One at sales@templuminc.com

SoFi's CEO Anthony Noto talks about Templum partnership with Liz Claman on The Claman Countdown on Fox Business to expand access to private markets On the The Claman Countdown on Fox Business, SoFi CEO  Anthony Noto  shared how the firm is putting its members ahead of the curve by unlocking deals once reserved for institutional investors. Through an expanded partnership with  Templum , SoFi members are able to invest in private market opportunities such as the  Cosmos Fund , which is currently offering exposure to Anthropic  – the next-gen AI platform seen as the future of artificial intelligence. “We will continue to bring these unique investment opportunities to our members – to give them access to products that previously only high-net-worth individuals could get,” Noto said. As the IPO market reopens and alternative assets continue to gain momentum, SoFi and Templum are redefining what it means to build wealth through private markets. Watch the full interview here: https://www.foxbusiness.com/video/6372076651112 Find out more about Templum’s partnership with SoFi here: https://www.templuminc.com/post/templum-and-sofi-expand-partnership-to-offer-exclusive-access-to-privately-held-shares-of-anthropic Reach out to our team sales@templuminc.com if you’d like to learn more about how your firm can create a partnership like SoFi and Templum.

Expansion of Alts unlocks access to highly sought-after investment opportunities for retail investors. SoFi and Templum expand partnership Read more here about the SoFi-Templum partnership

Templum and Alternatives Watch survey reveals the automation gap holding back private market growth. Automation or bust: Why alts must evolve to serve wealth managers Private markets have long been hailed as drivers of innovation — fueling breakthroughs in AI, biotech, and clean energy. But while alternatives have surged, the infrastructure surrounding it remains decades behind. For wealth managers and registered investment advisors (RIAs) seeking to incorporate alts into client portfolios, the real barrier isn’t interest or demand. It’s operational complexity. Templum Founder and CEO Christopher Pallotta has spent years building technology designed to address this challenge head on. “It’s a natural evolution,” he says. “Managers want a direct relationship with investors — and the private wealth channel is now larger than many institutional pools. But scale is impossible without automation.” To understand just how critical automation has become, Templum partnered with Alternatives Watch in May 2025 to survey wealth managers, family offices, and investment platforms overseeing billions in client assets. The results were telling: even as demand for alternatives grows, the industry remains bogged down by manual workflows, fragmented systems, and limited transparency. Alts demand Is rising — but so are operational headaches Nearly 70% of survey respondents said their clients plan to increase allocations to alternatives in the next 18 months. The top drivers? Diversification (71%), enhanced returns (64%), and access to unique investment opportunities (57%). Meanwhile, 35% expect target allocations of 5-10%; and another 35% will have alts portfolios 10-25% of assets this year, and 21% expect more than 25% of portfolios being allocated to alternatives. But even as allocations grow, operational challenges are straining advisor capacity. - 68% said investor onboarding is their most time consuming process - 56% flagged investment due diligence as a heavy lift - 56% also pointed to ongoing investor servicing such as delivering issuer/fund communications (capital calls, tax statements, fund performance) as major time sinks Whether it’s onboarding investors or providing timely K-1s, the technology to tackle all the challenges across various alternative investment strategies has been lacking. “Some alts workflows involve up to 70 steps just to complete a transaction,” Pallotta says. “RIAs and wealth managers spend half their day trying to track down a client’s positions and where they have invested across multiple platforms. A search for capital calls and distributions can also take time just to answer simple client questions. That’s not scalable.” Without automation, growth isn’t sustainable The greatest need for automation can be found in back-office processes — reconciliation, reporting and settlement, according to respondents. Half of those surveyed (50%) said their organization is “very likely” to or “somewhat likely” to invest in further automation within the next12 months. “There is still lots of room/need for automation of workflows,” commented a wealth manager/advisor with $10 billion plus in AUM. Respondents were evenly split between investing in automation for data analytics, business intelligence tools, and workflow automation solutions. “Investors expect the same digital experience in private markets that they already have in public ones,” Pallotta says. “But the industry hasn’t delivered. That’s the gap we’re solving.” Templum’s solution, says Pallotta, lies in a unified infrastructure that streamlines every touchpoint — from onboarding to order execution to post-trade. Its platform includes a marketplace with top asset managers, an investor-facing activity feed (think: a social media timeline for portfolio updates), automated document delivery, and integrated secondary trading via its registered Alternative Trading System (ATS) and Qualified Matching Service (QMS). “Investors can see where they are in real time,” said Pallotta. Instead of sending out individual communications, investors can access everything related to their portfolio in one place.” This model enables RIAs and wealth managers to serve clients more efficiently while benefiting from Templum’s open architecture, which allows them to keep preferred custodians, fund partners, and workflows intact. Access without the layers — and fees The survey also found that 55% of capital is expected to flow directly into private companies, bypassing the feeder fund model that has dominated distribution of late. Pallotta isn’t surprised. “Fees are a major issue. Feeder structures charge fees on top of fees. The economics just don’t work for many investors anymore,” he said. “Automation and seamless connectivity make direct investments feasible in a way that was previously not achievable, making feeder funds a thing of the past.” Templum’s partnerships with firms such as SoFi showcase these shifts. Through the Templum One marketplace, investors can access investments such as private equity, real estate, and shares in private companies like SpaceX, xAI and Databricks via SPVs — without the extra fee layers. This is just the beginning of a trend as the traditional exits of the IPO market become less plentiful and companies opt to stay private for longer. In the future, Pallotta predicts that some of the larger names will go on a semi- or quarterly-tender offering process so they can continue to stay private for longer. “There will be venture capital firms sitting in the middle of this and that will be a core part of their business going forward,” he predicted. “It’s a natural evolution,” Templum Founder and CEO Christopher Pallotta says. “Managers want a direct relationship with investors – and the private wealth channel is now larger than many institutional pools. But scale is impossible without automation.” The education and transparency gap The Templum/Alternatives Watch survey also uncovered that wealth management firms’ biggest concern was lack of information or knowledge of product when it comes to investing (54%). “Performance of private investments is difficult for investors to understand [as these are delayed], and fees on both the underlying funds and feeder funds are complex (e.g., management fees on committed vs invested capital, sponsor fees, special arrangements, carried interest),” said one wealth advisor with $5-10B in AUM. “There can be material performance differences on net IRR from the sponsor vs. net IRR to investors after the feeder fund costs. Communication of what is happening with the fund should be improved. Communication of liquidity constraints needs to be improved ... carry that all the way through interval funds and any strategy that is not daily liquid.” Pallotta agrees that clarity around net IRRs and fund structure is long overdue. But he’s optimistic that digital infrastructure will raise the bar. “As platforms scale, weak performers will be easier to spot. A ‘Supermarket for Alts’ — such as Templum One — gives investors better tools — and better comparisons — across managers,” he said. In the future too, Pallotta expects liquidity to be less of an issue as more secondary issuance is done on platforms. Templum already has this capability through its automated ATS and QMS that allow for secondary trading solutions. Looking ahead: The next phase of digitized access As private markets continue to evolve, momentum is building toward broader investor access and smarter infrastructure. Pallotta points to encouraging signs — from regulatory shifts to innovative fund structures — that are breaking down traditional barriers. While some survey respondents remain concerned about education and retirement account eligibility, Pallotta sees positive momentum. Easing of accredited investor rules, along with greater fund flexibility (such as evergreen and interval funds), will open the door to more investors — especially as platforms simplify subscription, communication, and secondary liquidity. “The alts space is 30 years behind when it comes to investment infrastructure,” says Pallotta. “But that’s changing. The wealth channel will drive the next wave of growth — if they have the tools to scale.” About Templum Templum, the future of private markets, offers a complete infrastructure solution that helps wealth firms modernize and expand their offerings to meet new generations of investors with Templum One and Templum as a Service. The company streamlines connection to an innovative global ecosystem with some of the world’s most sought-after private markets’ alternative assets. By delivering or integrating turnkey investment platforms, workflow solutions, and partner networks, Templum is democratizing access and simplifying the process for alternatives investment. The company’s robust technology and regulatory framework automates legacy processes and unifies a fragmented ecosystem. Non-Promotional in Nature This presentation is for informational purposes only. It is not intended as an offer to sell, or a solicitation of an offer to buy, any security or investment product. The survey results do not constitute investment advice, performance data, or a recommendation of any strategy, product, or service. Methodology and Limitations • The results reflect the views of respondents at the time of the survey and may not be representative of our full client base or the investing public. • Participation in the survey was voluntary and not incentivized. • No attempt was made to independently verify respondent identities or portfolio information. • Findings should be interpreted in context and not relied upon for investment decision-making. • For some questions, survey participants were able to select more than one driver. Therefore, these totals may exceed 100%. Use of Data All survey responses were aggregated and anonymized prior to analysis. No personally identifiable information has been disclosed or included in this presentation. The data may have been refined for readability and grouped for thematic clarity. Any forward-looking insights drawn from this data are based on subjective interpretations and are not predictive of future performance or investor behavior.

Pulse Edition August 15, 2025 A MESSAGE FROM OUR CEO, CHRIS PALLOTTA This month, we are relaunching  Pulse, our newsletter where financial shifts meet a technological lens. We’ve grouped our news by topic and trend as well as consolidated Templum’s commentary.     There’s evidence of growing international interest in alternative investments and proposed legislation in multiple jurisdictions to broaden access, but also a call for brokers and advisors to impose safeguards and provide deep education to investors. Included in this edition of Pulse are the findings of several surveys, including Templum’s  survey, that substantiate the rising interest in alternatives and the need for modern technology to automate workflows and knit together an aging network of investment infrastructure to meet increased demand.     The market participants that recognize the need for modern infrastructure are, in our opinion, best positioned to benefit from the swell in demand for private market alternative investments. At Templum we have purpose-built our investment and regulatory platform, and have included what’s required for investing in private market alternatives to scale. Moreover, we include our clients in the feedback loop for development, so we’re building what asset managers, investors, advisors, and retail investors need (access to an ever-growing list of unique opportunities and a modern investing platform).     I hope you enjoy the read.  IN THIS ISSUE OF THE PULSE: LEGISLATION ON THE MOVE    EVOLUTION AND RETAIL EXPANSION IN EVERGREEN FUNDS   CAN SECONDARIES PROVIDE FLEXIBILITY WITH THE RISING CONCERNS OF TIGHTENING LIQUIDITY AND TECHNOLOGY SUPPORT?   WIDESPREAD CHANGE – IT’S HITTING FAMILY OFFICE & RETAIL FINANCE UNDER THE TECHNOLOGY LENS LEGISLATION ON THE MOVE  There’s movement stateside and abroad for legislation that opens private market investing interests. Outside of the United States, there is consistent reporting on the rise of demand for alternatives in Australia, Europe, and the Middle East. A noteworthy read is an article out of the UK that speaks to the role of private equities in solving public challenges.  Read more below.   Big changes could be coming to your 401(k) – Employers sponsoring retirement funds in the United States  can now offer alternative assets as an investment opportunity to their employees. That’s due to President Donald Trump’s signature on an executive order signed on Thursday, August 7, 2025. The move is being called a first step because it is. It’s a call to review and roll back legislation still in place from 50 years ago (1974). With firms staying private longer (roughly 25 times more individual firms in private equity), the options in public markets have seen less growth. With increased access, however, comes increased pressure for advisors to choose investments based on factors beyond returns alone.  Specifically, advisors are responsible for evaluating private market opportunities and the sub-advisors managing investments. Read more .  ABROAD: A GLOBAL VIEW, $1 TRILLION SHIFT IN MOTION Australian Market in the alternatives space – Australian  investors have long built out allocations in private markets. Now the seventh-largest superfund in the country, AustralianSuper from Colonial First State (CFS), is raising its stake in the game of alts to bring diversification into the portfolio through US private markets. The bank has partnered with JP Morgan and is focusing on secondaries and co-investments. This recent partnership underscores the rising global appetite for diversification through US private market alternatives.  Read more .   The critical role of private capital, globally   – In an article out of the UK,  an editor addresses the interconnectedness of governments and private equity. The role that private capital plays – a “critical partner in solving public challenges”. Private capital is now under scrutiny and suspicion; however it has played a critical role in technology transformation across the industries, which is being credited with “ financing the backbone of tomorrow’s economy ”.   Ultimately, the structural shifts happening today are reshaping where capital flows – and how   – A  report from HSBC and New Financial  shows that over $1 trillion in value has migrated from public exchanges to private ownership in Europe alone over the past decade, reflecting a global rebalancing toward private markets as the center of gravity for growth, innovation, and long-term value creation. Meanwhile, with  family offices in the Middle East now allocating up to 50% of their portfolios to alternatives and  Moody’s and MSCI  launching independent private credit risk benchmarks, the ecosystem is evolving fast.    EVOLUTION AND RETAIL EXPANSION IN EVERGREEN FUNDS  From Goldman Sachs predicting the growing popularity of Evergreen funds (see graph below) to Private Equity International’s take on them, Evergreen funds have taken a spotlight in the news. Goldman Sachs also predicted a convergence in private and public markets and is looking at new Evergreen fund models to give “diversification without compromise”. Read more below.  Private credit goes big on open-ended funds to lure retail cash  – Evergreen funds have been attractive to retail investors due to the ability to “cash out at periodic intervals and accept money on an ongoing basis”. Goldman Sachs has predicted a record number of them being opened this year. Now there’s about $12.5 trillion from retirement funds that may be on the table from an executive order last week (see graph above), and firms are rapidly mobilizing to create hybrid evergreen frameworks. Read more.     Evergreen Funds’ Limits are a deliberate feature  – Private Equity International’s latest article  positions limits in evergreen funds as a “deliberate feature” in the latest article. What’s that design feature? It protects the long-term investor from losing gains in the short term.     A Convergence Is Underway  – The lines between public and private markets are also beginning to blur. As  Goldman Sachs  notes, integrated strategies – including evergreen structures that offer durability and flexibility – are gaining traction among both institutional and individual investors. The message is clear: capital allocators want diversification without compromise, and they’re increasingly willing to adopt new models to get it.    Differentiated fund product is key to long-term success – Susan Long McAndrews  formerly served as chief executive of Pantheon Securities, gave an overview of private market evolution. When asked how private markets may evolve, she predicted the creation of evergreen funds and a tailwind at the heels of secondaries. When asked the keys to success – she pointed to differentiated product and market consolidation brought by private fintech companies.     CAN SECONDARIES PROVIDE FLEXIBILITY WITH THE RISING CONCERNS OF TIGHTENING LIQUIDITY AND TECHNOLOGY SUPPORT?  Private equity’s return over the last ten years averaged 12.5%, and J.P.M. put out a market survey report that substantiates the statistic. Although the outperformance holds steady, there’s concerns about tightening liquidity that has investment attention turning towards the secondary market. Read more below.  Private Markets Hit a Turning Point: Outperformance Holds, But Infrastructure and Liquidity Demand a Rethink  – As we move through 2025, private markets are entering a more complex phase – one defined by continued outperformance but also growing pressure around liquidity and infrastructure. The value proposition of alternatives holds – private equity delivered a 12.5% median annual return over the past decade, according to  J.P. Morgan Asset Management’s latest alternatives report.   But behind the returns, liquidity is tightening, workflows remain fragmented, and scale remains elusive for many. As a result, investors are rethinking not just allocation strategies, but also how they manage liquidity, tap secondaries, and adopt technology infrastructure that can support automation, transparency, and broader access.   Performance vs. Liquidity: The Great   Divergence  – While returns continue to exceed those of public markets, liquidity has become a central concern. Slower M&A activity and fewer exits have pushed distribution rates in venture capital to just 5.4%, well below historical averages. The result is a dramatic rise in secondaries activity, as investors seek flexibility in a less fluid environment – a trend  Private Equity International  notes will continue through 2025 and beyond.    WIDESPREAD CHANGE – IT’S HITTING FAMILY OFFICE & RETAIL  Family Offices and Retail Investors Drive Structural Change  –   It’s not just institutions feeling the impact. Family offices are also repositioning.  – According to a  new study from BlackRock , these investors are prioritizing diversification, resilience, and optionality – favoring evergreen fund structures, continuation vehicles, and niche private strategies over rigid commitments.    Rise of the retail investor –  At the same time, the long-heralded rise of the retail investor in private markets is rapidly materializing.  State Street  reports that 50% of private market flows are expected to come from individual investors by 2027, with semi-liquid products leading the charge. Supporting this shift, the  SEC has signaled  it may revisit long-standing restrictions that limit retail exposure to private funds – a move that could transform how access is structured and delivered. A  recent survey from Lansons  further confirms the appetite: U.S. retail investors could drive up to $1.3 trillion in new capital into alternatives, especially if transparency and accessibility improve. But awareness remains a hurdle.     FINANCE UNDER THE TECHNOLOGY LENS  The infrastructure gap is real. It’s holding the industry back –  Despite the demand, the ecosystem enabling access to alternatives remains fragmented. In a  recent WealthTech Today  feature , advisors voiced frustrations with manual workflows, disconnected systems, and opaque processes that make it difficult to scale. Whether serving institutions, advisors, or individuals, platforms must move beyond legacy tech to deliver modern, integrated infrastructure that simplifies everything from onboarding and execution to reporting and liquidity. Learn more about it in Templum’s  recent survey .     This is precisely the gap that partnerships like the one between  Templum and J.P. Morgan Asset Management  aim to solve – bringing institutional-grade private real estate to a broader set of investors through automated, digital-first solutions. By embedding access to alternatives within a fully integrated platform, this kind of partnership eliminates barriers and meets the growing demand for seamless private investment experiences.    But to unlock the full potential of this transformation, private markets need more than demand – they need infrastructure that matches the moment. The firms that can deliver access, automation, and adaptability will shape the next era of private investing.    ABOUT TEMPLUM      Templum  is moving private markets investing forward with the network layer that unifies the entire ecosystem. As a solution partner, Templum provides full investment lifecycle technologies, workflow solutions, and broker-dealer support via configurable white label, hybrid, or API deployments. The Company’s two offerings ( Templum One  and Templum as a Service ) are designed to enable private market strategies for TAMPs, RIAs, institutional brokers, banks, fintechs, online brokers, and asset managers. Templum is modernizing the technology backbone and opening access to a broader range of investment opportunities for a growing investor base. The Company’s vision is to expand capital markets, making a radical departure from the outmoded technology hindering investments today.     All securities offered by Templum Markets LLC, a wholly owned broker-dealer and Alternative Trading System (ATS) subsidiary of Templum, Inc. For more information, please visit  https://templuminc.com .

This addition to the Templum One ecosystem marks a major step toward broader access to institutional-quality assets through innovative private market infrastructure. JP Morgan Asset Management and Templum partner to provide investors with private real estate opportunities Templum, the digital infrastructure powering the future of private markets through scale, access and automation, today announced a partnership with J.P. Morgan Asset Management, a global leader in investment management, to provide investors on platforms connected to Templum One with access to private real estate. This addition to Templum One expands the range of alternative assets available to investors seeking portfolio diversification through private market opportunities. As investors move beyond the traditional 60/40 portfolio , private real estate has emerged as a standout alternative. Templum One is a fully integrated private markets ecosystem that seamlessly connects investors to high-demand alternative assets. By providing direct access to exclusive opportunities unavailable in public markets, Templum One empowers wealth managers, advisors, and investment platforms to seamlessly differentiate their offerings and deliver meaningful diversification to clients through a broader range of investment opportunities. “ We’re excited to welcome J.P. Morgan Asset Management to Templum One and enthusiastic about what this partnership represents – everyday investors gaining access to the kinds of real estate opportunities that were once out of reach,” says Templum’s Founder and CEO, Chris Pallotta . “ This collaboration demonstrates the strength of the Templum One ecosystem and the future we’re building: private markets that are more inclusive, transparent, and built for modern investors.” The addition of J.P. Morgan Asset Management to the platform marks another milestone in Templum’s mission to make premier private market opportunities more accessible than ever, redefining access to institutional-quality private investments for a broader class of investors. J.P. Morgan Asset Management has over 60 years of expertise in real estate investing and manages over $79 billion in real estate assets globally (as of 12/31/2024).     ###   About Templum     Templum is transforming access to private markets with technology that makes investing in alternatives as seamless as trading public equities.   At the core of our offering is   Templum One , our flagship ecosystem that connects a partner-driven network of investors with top-tier fund managers and high-demand private assets. Templum One connects the full value chain – linking investors, wealth managers, advisors, platforms, asset managers, custodians, fund admins, and transfer agents through our tailored technology solutions – enabling access to exclusive investments, along with seamless workflows across any asset class.   Templum-as-a-Service delivers end-to-end infrastructure purpose-built for private markets. Whether you're launching your own branded marketplace through white label deployment or integrating via API, we automate the entire investment lifecycle from onboarding to execution to post-trade so you can go to market faster, raise capital smarter, and offer a seamless investor experience.   To support liquidity, Templum also offers multiple secondary trading solutions – including an automated   Alternative Trading System (ATS)   and   Qualified Matching Service (QMS) – delivering efficient exits for a broad range of private investments.   Faster, more scalable, and more cost-effective than anything else in the market today, Templum is the infrastructure powering the next generation of private market investing.   All securities offered by Templum Markets LLC, a wholly owned broker-dealer and Alternative Trading System (ATS) subsidiary of Templum, Inc. For more information, please visit  www.templuminc.com .   Contact Templum to learn more about accessing private markets alternative investments on Templum One:  sales@templuminc.com                                                                                Media Contact : marketing@templuminc.com

Businesses increasingly recognize the importance of helping employees achieve financial success by providing easy-to-use tools for managing their investment options . Templum’s white label Employee Investment Marketplace streamlines investment access for employees – empowering them to take charge of their financial future – while fostering alignment with corporate goals. Templum's Employee Investment Marketplace helps employees achieve financial success with easy-to-use tools to manage their investment options The modern workforce expects tools that are as innovative as the companies they work for. Templum’s Employee Investment Marketplace represents the future of employee investing – seamless, efficient and empowering. It’s not just about offering investment opportunities; it’s about creating a financial ecosystem where employees and employers thrive together. For asset managers, fragmented processes and outdated systems are more than just inconveniences – they drain valuable resources, create inefficiencies, and cost firms both time and money. Employees often struggle to access critical investment information, lack clear visibility into their investment holdings, and face unnecessary delays in obtaining essential documents such as tax forms. These disjointed systems not only frustrate employees but also divert your staff from higher-value tasks as they manually address inquiries and navigate cumbersome processes. The result is reduced engagement with firm-sponsored investment opportunities and missed financial potential for both employees and the firm. Templum’s Employee Investment Marketplace solves these challenges by centralizing and modernizing the investment process. Designed to save firms time and reduce costs, the portal replaces fragmented workflows with an integrated platform that automates routine tasks, streamlines access, and delivers a better investing experience for employees. Through a single, branded interface, employees gain seamless access to investment offerings, real-time visibility into their holdings, , and the ability to retrieve critical documents instantly. Meanwhile, firms benefit from a centralized platform that simplifies monitoring, customizes access for specific groups or individuals, and ensures secure handling of sensitive information. By removing barriers to participation, the Employee Investment Marketplace allows firms to enhance employee engagement, align employees’ financial goals with corporate objectives, and drive greater participation in your investment offerings – all while freeing internal resources to focus on strategic priorities. Templum’s solution delivers measurable value, empowering asset management firms to create efficiencies, improve the employee experience, and achieve stronger outcomes. No-Code Customization   With Templum’s no-code approach, firms can invite employees to a private, branded marketplace without requiring extensive IT support. This ensures a quick deployment while maintaining flexibility to integrate seamlessly with existing workflows and third-party services.   The platform also allows white-label customization, enabling businesses to deliver a branded experience that reflects their commitment to employee success.   •    Support for Multiple Offerings – Manage all investment opportunities in one place. •    Customizable Access – Grant permissions to all employees or specific groups. •    Unified Portal – Facilitate onboarding, showcase offerings, place orders, and sign subscription agreements – all on one seamless platform •    Comprehensive Investor Communications  – Provide performance updates, distribute tax information, and share important documents effortlessly. •      Liquidity Management  – Seamlessly manage liquidity and enable secondary trading as necessary to meet employee and organizational needs. •      Educational Resources  – Empower employees with the knowledge they need to make informed investment decisions through accessible and relevant materials.   Comprehensive Lifecycle Management   Templum’s solution provides comprehensive tools to manage the entire investor lifecycle, including:   Onboarding – Simplify the process with electronic workflows. Risk Tolerance & Suitability Reviews – Meet regulatory requirements with risk tolerance assessment tools. Order Processing and Payments – Streamline transactions with integrated payment rails. Ongoing Support – Deliver a seamless experience with dedicated customer service capabilities. Post-Trade Reporting – Enhances efficiency, accuracy, and transparency by streamlining compliance, reducing manual errors, and providing real-time insights into trade activities.   Unite Your Workforce and Align Interests   Manual processes often bog down firms, diverting resources from important strategic initiatives. Templum’s automated platform ensures that administrative tasks like subscription agreements and order processing are handled efficiently. The result? Enhanced productivity and a more focused, motivated team.   An aligned workforce is an engaged workforce. By providing employees with easy access to firm-sponsored investment opportunities, Templum helps organizations build stronger connections between employee financial success and corporate performance. This alignment fosters loyalty and drives a shared sense of purpose.   Discover how Templum’s Employee Investment Marketplace can transform your organization by reaching out to our sales team at sales@templuminc.com or visit our website for more information on Templum Marketplace Solutions and start driving success through intuitive investment solutions.

Private Markets investments in the 50/30/20 portfolio allocation We’re in uncharted territory. Stubborn inflation, interest rate uncertainty, and market volatility have now been compounded by tariff policy that is shaking investor confidence and putting new pressure on traditional portfolio strategies. The result? A growing realization that the old rules no longer apply. Against this backdrop,  BlackRock CEO Larry Fink’s annual Chairman’s Letter  has made waves across the financial world. He calls for a departure from the long-standing 60/40 portfolio allocation of stocks and bonds, and increased access to alternatives, creating a more resilient model: the  50/30/20 portfolio , which includes private market investments such as private credit, infrastructure, and real estate. “Everyday Americans should be able to invest in private credit, infrastructure, and real estate alongside stocks and bonds,” Fink writes. “This can improve returns, reduce volatility, and enhance diversification.” This isn’t just a theoretical shift. It’s a call to action – and at Templum, we’re already helping firms answer it. The New Portfolio Reality: Private Markets at the Core Fink’s message comes at a moment when advisors, platforms, and wealth managers are already pivoting to include private markets as essential components of client portfolios. Recent surveys from Blackstone and Hamilton Lane show an overwhelming number of advisors plan to increase allocations to private assets this year – many targeting 10–20% or more. Private markets offer what public markets increasingly can’t:  stability, income, and diversification  in the face of volatility. But access and infrastructure have historically held firms and investors back from being able to participate. Templum: Enabling the 50/30/20 Portfolio of the Future That’s where  Templum  steps in. Our  Templum One  private markets ecosystem and  Templum-as-a-Service  offerings provide the digital infrastructure firms need to offer self-directed clients and advisors exposure to institutional-quality opportunities – without the operational complexity or barriers of the past. We’re powering the market with partnerships like our collaboration with  SoFi , bringing private markets to a new generation of investors. Through our ecosystem, firms can efficiently access, manage, and trade private investments – transforming what was once illiquid and inaccessible into a scalable, streamlined experience akin to public markets. A Structural Shift That Demands Action We are entering a new era of investing — one that requires diversified, forward-thinking portfolio construction. The headlines of today underscore the urgency to act. Templum is here to support firms at every stage of that evolution — making it possible to navigate market dislocation with strength, transparency, and access to a broader opportunity set. Discover how Templum can power your transition to the 50/30/20 portfolio at  www.templuminc.com .

Private credit has gained significant traction in recent years, especially as traditional banks have scaled back their lending activities. This shift has opened the door for asset managers and specialized funds to step in and provide direct lending solutions to companies. The growing appeal of private credit is partly due to its ability to offer higher yields compared to traditional fixed income investments, which has driven the development of funds specifically structured for lending purposes. As these funds have become more prevalent, they have been able to meet the financing needs of companies that might otherwise struggle to secure funding from conventional sources. Corporations can raise money through various channels, such as issuing bonds or obtaining loans from banks. However, with the current economic climate, the spread between U.S. Treasuries and corporate credit has been widening. This trend is influenced by several factors, including economic uncertainty, interest rate fluctuations, and investor demand for higher yields in a riskier environment. As of mid-2024, the spread between investment-grade corporate bonds and U.S. Treasuries was around 92 basis points (1) , while the spread for high-yield bonds had increased to approximately 359 basis points and is expected to rise to 450-475 basis points by the end of the year. (2)   This widening reflects the higher risk premiums investors are demanding as they seek better compensation for the perceived risk in corporate credit compared to the safer U.S. Treasuries. Private credit refers to debt investments that are not issued or traded on public markets. Instead, these loans are directly negotiated between lenders (often institutional investors, private equity firms, and alternative asset managers) and borrowers, typically small and mid-sized businesses. Private credit can take various forms, including senior secured loans, mezzanine debt, direct lending, distressed debt, and special situations financing.   Key Characteristics   Illiquidity – private credit investments are typically illiquid, meaning they cannot be easily bought or sold on secondary markets. Investors often commit capital for a set period, usually ranging from three to seven years.   Higher Yields – due to the illiquid nature and higher risk profile of private credit, these investments often offer higher yields compared to public bonds or traditional fixed income securities. Customizable Structures – unlike public debt markets, private credit allows for customized loan structures tailored to the specific needs of the borrower and preferences of the lender. This flexibility can lead to more favorable terms for both parties.   Lower Correlation with Public Markets – private credit investments tend to have a lower correlation with public equity and bond markets, providing diversification benefits and potentially reducing overall portfolio volatility.   Types of Private Credit Investments   Private credit encompasses a broad range of debt instruments, each with its own risk-return profile and investment characteristics:   Senior Secured Loans are loans that are backed by collateral, such as the borrower’s assets. These loans have the highest priority in the capital structure, meaning they are paid back first in the event of a default. Senior secured loans are typically considered lower risk within the private credit space but still offer attractive yields compared to public bonds.   Mezzanine Debt is a hybrid form of financing that sits between senior secured debt and equity in a company’s capital structure. It often comes with higher interest rates and may include equity kickers or warrants, providing lenders with an upside potential if the borrower performs well. However, mezzanine debt is riskier than senior secured loans because it is subordinate in the event of default.   Direct Lending involves private lenders providing loans directly to middle-market companies, often to finance growth, acquisitions, or refinancing. Direct lending has become increasingly popular as banks have reduced their lending to smaller companies due to regulatory changes. These loans are typically structured as senior secured loans, offering relatively high yields and strong protections for investors.   Distressed Debt investing involves purchasing the debt of companies that are in financial trouble or have already defaulted. Investors in distressed debt aim to profit from the company’s turnaround or restructuring, often by acquiring the debt at a significant discount. This strategy is high-risk but can offer substantial returns if the company successfully recovers.   Special Situations financing refers to loans provided in unique or complex circumstances, such as financing for corporate restructurings, turnarounds, or recapitalizations. These investments require specialized knowledge and expertise but can offer high returns due to their complexity and risk.   Benefits of Investing in Private Credit   Attractive Risk-Adjusted Returns – Private credit investments typically offer higher yields than traditional fixed income securities, making them attractive to income-focused investors. The ability to negotiate loan terms and the collateralized nature of many private credit deals can also help mitigate risks and enhance returns.   Diversification – Adding private credit to a portfolio can provide diversification benefits, as these investments tend to have low correlations with public equity and bond markets. This can help reduce overall portfolio volatility and enhance stability during periods of market stress.   Customization and Control – Private credit allows for more tailored investment opportunities, with loan structures that can be customized to meet the specific needs of both lenders and borrowers. This flexibility can lead to more favorable terms, such as higher interest rates, better covenants, and enhanced protections.   Potential for Enhanced Security – Many private credit investments are secured by collateral, which can provide an additional layer of protection for investors. In the event of a borrower’s default, the lender may have a claim on the borrower’s assets, reducing potential losses.   Risks and Considerations   While private credit offers numerous benefits, it is not without risks. Investors should carefully consider the following before allocating capital to this asset class:   Illiquidity – Private credit investments are often illiquid, meaning investors must be prepared to commit their capital for an extended period. The lack of a secondary market for these loans can make it difficult to exit positions before maturity.   Credit Risk – The primary risk in private credit is the creditworthiness of the borrower. A default or downgrade in the borrower’s financial health can result in significant losses for the lender. Conducting thorough due diligence and ongoing monitoring is essential to managing this risk.   Market and Economic Conditions – Private credit performance can be influenced by broader market and economic conditions. For example, rising interest rates or a downturn in the economy could increase default rates among borrowers, leading to potential losses.   Complexity and Expertise – Investing in private credit requires specialized knowledge and expertise. The complexity of loan structures, legal considerations, and the need for active management can make it challenging for individual investors to navigate this space without professional guidance.   Regulatory and Legal Risks – Private credit markets are less regulated than public markets, which can increase the risk of fraud, mismanagement, or legal disputes. Investors should be aware of the regulatory environment and ensure they are working with reputable partners.   Private Credit Investing   For those interested in investing in private credit, there are several ways to gain exposure:   Private Credit Funds pool capital from multiple investors to invest in a diversified portfolio of private loans. These funds are managed by professional asset managers with expertise in credit markets. Private credit funds can offer access to a broad range of debt instruments and provide diversification across borrowers, industries, and geographies.   Experienced investors with significant capital and expertise can make direct investments in private credit deals. This approach allows for greater control and the ability to negotiate terms directly with borrowers. However, direct investment also requires more involvement in due diligence, management, and monitoring.   Business Development Companies (BDCs) are publicly traded entities that invest in private companies, often through direct lending or mezzanine financing. BDCs provide a way for individual investors to gain exposure to private credit with the added benefit of liquidity, as shares can be bought and sold on public exchanges.   Some Private Equity firms offer credit-focused funds or strategies that invest in private debt as part of their broader investment mandate. These firms may offer opportunities to invest in specialized credit vehicles or distressed debt strategies.   The Wrap   Investing in private credit offers a unique opportunity to diversify portfolios, achieve higher yields, and gain exposure to the private market. While it comes with certain risks and challenges, the potential rewards can be significant for those who understand the intricacies of this asset class. Whether through private credit funds, direct investments, or publicly traded BDCs, investors have various avenues to explore this growing segment of financial markets.   As with any investment, it’s essential to conduct thorough due diligence, understand the risks involved, and consider your investment objectives and time horizon. For those looking to enhance their fixed income portfolios, private credit may be an attractive option that provides both income and diversification benefits.   Interested in Private Credit investments? Check out how the Templum One marketplace  is bringing together investors with private alternative investment opportunities. Reach out to our team today sales@templuminc.com     1 https://www.schwab.com/learn/story/corporate-bond-outlook 2 https://pitchbook.com/news/articles/2024-us-high-yield-outlook-receding-rates-imminent-maturities-to-spur-dealmaking