The position is new, a Franklin spokeswoman said.
Mr. Clifford will focus on business development and growth of Franklin Templeton's $16 billion alternatives business, and will work with K2 Advisors, Franklin Templeton's $11.8 billion hedge fund business.
He will report to Mat Gulley, executive vice president, head of alternatives.
Mr. Clifford was senior managing director, global head of corporate strategy at EnTrustPermal. Information on his replacement could not be immediately learned.
Franklin Templeton had a total of $722 billion in assets under management as of Aug. 31.