Benefit Street Partners, recognized as a leading credit-focused alternative asset manager, has made waves in the financial world with its diverse range of investment strategies that span the entire credit spectrum. Recently, they announced a collaboration with Coller Capital, the premier dedicated private markets secondaries manager globally. Together, they have successfully closed on a remarkable $2.3 billion private credit continuation vehicle, known as BSP Debt Fund IV CV.
This landmark deal, which Coller Capital primarily drove, stands out as the most extensive single-fund portfolio of its kind in the private credit secondaries market. This notable achievement highlights the increasing significance of private credit in today’s investment landscape.
The primary purpose of BSP Debt Fund IV CV is to create a robust and income-generating portfolio. By focusing on diversified, senior secured, floating-rate loans—both from sponsor-backed and non-sponsor-backed sources—the fund aims to tap into the financial potential of U.S. middle-market companies. Specifically, it targets loans originating from the BSP’s flagship direct lending fund, which dates back to 2016 and primarily includes first-lien loans. This strategic acquisition is expected to enhance the fund’s resilience while providing attractive returns for investors.
Overall, this partnership is not just about numbers; it represents a significant step toward tapping into the evolving dynamics of private credit markets. The collaboration reflects a shared vision to foster growth and stability in an ever-changing economic environment, making it a notable development in the world of finance.
Advisors: Jefferies served as financial adviser on the transaction. Kirkland & Ellis acted as legal counsel for Benefit Street Partners. Cleary Gottlieb Steen & Hamilton acted as legal counsel for Coller Capital. J.P. Morgan and Wells Fargo provided financing for the transaction.
KEY QUOTES:
“This transaction underscores our ability to deliver strong outcomes for our investors while also advancing innovation in the private credit secondaries market. This continuation vehicle structure allows us to extend the life of our fourth flagship private credit vintage and position the portfolio for continued success.”
Blair Faulstich, Head of Private Debt at Benefit Street Partners
“We are delighted to have led this landmark transaction with BSP, which represents another significant step in the evolution of the credit secondaries market and highlights the diversified exposure and strength of the core middle market. Our leadership role, combined with the quality of the portfolio and BSP’s established track record, made this a compelling opportunity for our investors.”
Ed Goldstein, Partner and Chief Investment Officer of Coller Credit Secondaries at Coller Capital
