Benefit Street Partners (BSP) announced the final closing of its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Consistent with prior vintages, this fund seeks to generate attractive risk-adjusted returns by investing primarily in privately originated, floating rate, senior secured loans.
The fund will target private equity-sponsored and non-sponsored middle-market companies in North America. The investors include sovereign wealth funds, public and corporate pension plans, insurance companies, family offices, and other institutional investors.
BSP is a leading credit-focused alternative asset manager with approximately $75 billion in assets under management. And the combined BSP-Alcentra platform has over 400 employees, including 170 investment professionals, in multiple locations across the globe.
BSP manages assets across various complementary credit strategies, including private/opportunistic debt, structured credit, high yield, special situations, long-short liquid credit, and commercial real estate debt. Plus, BSP offers investors deep industry and structuring expertise, demonstrated credit discipline, access to sponsor and non-sponsor deal flow, and a 15+ year track record in the private credit markets. Based in New York, the BSP platform was established in 2008.
BSP is a wholly-owned subsidiary of Franklin Templeton. BSP’s U.S. private debt platform has deployed about $38 billion since launching in 2008.
KEY QUOTES:
“The close of BSP Debt Fund V reflects the strong demand for this asset class from both existing and new limited partners around the globe. The market opportunity and backdrop for U.S. direct lending is tremendous. We are grateful for the confidence our investors have shown in our team to deploy this portfolio. We look forward to providing companies with bespoke financing solutions in this latest vintage fund, while helping our investors seek to achieve their target returns.”
— David Manlowe, Chief Executive Officer of BSP
“The private credit asset class has been established as an integral part of the leveraged finance ecosystem and as an all-weather allocation for institutional investors’ portfolios. Looking forward, we expect continued broad interest in the asset class as investors seek exposure to investment opportunities that offer highly attractive risk-adjusted returns. Many of the dynamics we observe in today’s market should drive robust deal flow over the near to medium term. Our significant underwriting experience, loan structuring expertise, and focus on deep due diligence provides us with a significant competitive advantage as we capitalize on the favorable environment for new credit investments.”
— Blair Faulstich, Head of U.S. Private Debt at BSP
