Benefit Street Partners (BSP), a credit-focused alternative asset manager, announced it has reached a final close for BSP Real Estate Opportunistic Debt Fund II (ODF II), providing $10 billion of investable capital inclusive of related vehicles and anticipated leverage, backed by $3 billion of equity commitments. BSP said the raise is the largest in its history for its U.S. real estate debt strategy.
BSP said ODF II will follow the approach of its predecessor by originating senior and junior commercial real estate debt investments across major U.S. markets, with an emphasis on multifamily. The firm said it is targeting middle-market lending opportunities, including transitional, distressed, or otherwise complex properties where flexible capital and underwriting expertise can drive value.
The close caps a year of elevated activity for BSP’s commercial real estate team, which the firm said originated nearly $9 billion of real estate investments during 2025.
BSP said its real estate debt platform has been active since 2013 and includes more than 300 dedicated real estate professionals in the U.S. The firm said the platform has originated more than $30 billion of investments and maintains relationships with operators and institutional sponsors across major markets. BSP added that the investment and professional figures include combined capabilities with NewPoint, a portfolio company of Franklin BSP Realty Trust (NYSE: FBRT), which is externally managed by BSP.
KEY QUOTES
“The continued shift toward private credit solutions in U.S. commercial real estate lending is creating an opportunity set we believe is both compelling and enduring. With our scale, experience, and disciplined approach to credit, BSP is well positioned to capitalize on today’s market environment. We are grateful for the strong support from our investors and remain focused on delivering attractive, risk-adjusted returns across the cycle.”
David Manlowe, Chief Executive Officer, BSP
“We appreciate the trust our investors have placed in BSP, reflecting their conviction in our platform and in the opportunities present across the real estate lending market today. With traditional lenders pulling back and a significant wave of maturities ahead, we see a favorable backdrop for well-capitalized private lenders. Our experience across cycles and longstanding relationships position us to originate high-quality, well-structured loans in a market where private capital is increasingly essential.”
Michael Comparato, Senior Managing Director and Head of Real Estate, BSP
