Benefit Street Partners (“BSP”) and its parent company Franklin Templeton announced the launch of Franklin BSP Private Credit Fund (FBSPX). The fund takes a multi-strategy approach to investing in US middle market private credit, seeking to generate strong current income and superior risk-adjusted returns across market cycles. Its interval fund structure provides access to potentially higher-yielding, senior-secured, credit-focused strategies not as readily available in traditional fixed income mutual funds.
“With inflation and interest rates on the rise, diversifying with private credit can reduce portfolio volatility while providing consistently high risk-adjusted returns. Combining BSP’s diverse credit strategies, this fund offers investors the ability to invest in high conviction ideas across the credit spectrum and the capital structure. We take a flexible but disciplined approach to investing and seek to capitalize on attractive risk-adjusted returns throughout the credit cycle with a focus on proprietary deals,” said Richard Byrne, President of BSP.
Private credit continues to offer the potential for attractive yield opportunities relative to traditional fixed income portfolios by focusing on the middle market gap. Managed by BSP Managing Directors Anant Kumar and Saahil Mahajan, the fund will invest primarily in US private debt, including a combination of traditional direct lending, opportunistic/rescue lending, high-yield, liquid loans, and real estate debt. The portfolio managers intend to adjust allocations dynamically to reflect changes in relative value across the credit spectrum.
Franklin BSP Private Credit Fund provides institutional-quality expertise, utilizing the same BSP investment team that manages similar institutional credit-focused strategies, making it accessible to income-focused investors. More information is available at www.franklintempleton.com/bspcred.
BSP is part of the Alternatives by Franklin Templeton platform, bringing a full range of institutional-quality alternatives expertise to the US wealth management market. “With this new platform, we’re making our proven institutional managers including BSP, Clarion, Lexington Partners and K2 accessible to wealth managers across the country, enabling more investors to benefit from the diversification of private markets and alternative strategies,” said Jeff Masom, Franklin Templeton’s head of US Distribution. “Franklin BSP Private Credit Fund presents an exciting opportunity to bring BSP’s experience and capabilities in private lending to a broader range of investors through the interval fund structure.”
The Alternatives by Franklin Templeton platform comprises over $260 billion in asset under management at June 30, 2022 on a pro forma basis after giving effect to Franklin Templeton’s pending acquisition of BNY Alcentra Group Holdings, Inc. (together with its subsidiaries, “Alcentra”), a leading European alternative credit manager, which will make Franklin Templeton one of the largest managers of alternative assets.
BSP offers a range of structures and vehicles for income-focused investors, such as: Franklin BSP Realty Trust, Inc. (NYSE: FBRT), a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the US; and two non-listed business development companies, Franklin BSP Lending Corporation (FBLC) and Franklin BSP Capital Corporation (FBCC).