Benefit Street Partners (BSP), a leading credit-focused alternative asset management firm and a subsidiary of Franklin Templeton, announced that it has closed on $500 million in total equity commitments for its third captive U.S. CLO equity fund, BSP CLO Equity III.
This fund enables BSP to fund up to 20 U.S. CLOs over the next four years, adding up to $10 billion in assets under management to BSP’s credit platform. Combined with Alcentra (its European counterpart), BSP is one of the largest global CLO managers with over $26 billion in CLO AUM and a 20+ year track record of investing in the asset class.
KEY QUOTE:
“The consistent performance of U.S. CLO equity across multiple credit cycles has earned it a permanent allocation within private credit portfolios. Investor demand for this strategy reflects both the asset class’s growing appeal and continued confidence in BSP’s ability to deliver attractive, risk-adjusted returns through disciplined investing, deep credit expertise and the strength of our experienced team.”
Vince Pompliano, Managing Director and Co-Head of CLO Platform
