Franklin Templeton and Benefit Street Partners have completed a transaction with Encina Lender Finance that expands BSP’s asset-backed finance capabilities across consumer and commercial lender finance.
As part of the transaction, a new fund backed by Franklin Templeton and BSP-affiliated funds acquired an initial seed portfolio with approximately $480 million of commitments originated by Encina. A 14-person investment team from Encina has also joined BSP and will continue managing and originating investments through the strategy.
The transaction expands BSP’s broader private asset-backed finance platform, which now spans corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance, and lender finance.
Following the combination, BSP’s asset-backed finance platform provides access to approximately 100 investment professionals and a track record dating back to 2013. The business has completed more than $10 billion of investments since inception, and BSP believes the combined platform can originate more than $3 billion annually.
The incoming Encina team specializes in senior secured, unitranche, and first-out financing for consumer and commercial asset originators across the U.S. and Canada. Investments are supported by diversified pools of underlying assets including consumer loans, credit card receivables, and small business loans.
Franklin Templeton managed approximately $1.8 trillion in assets as of September 30, 2026, including more than $300 billion in alternative assets. BSP manages approximately $97 billion and focuses on strategies including direct lending, real estate debt, structured credit, liquid loans, and asset-backed finance.
Franklin Templeton said the transaction reflects its strategy of using its balance sheet selectively to expand private market capabilities while combining specialized investment expertise with its global distribution platform.
Asset-backed finance has become a growing segment within the approximately $6 trillion global private credit market. Industry data cited by the companies indicated that ABF represented approximately 20% of private credit fundraising in 2025.
Willkie Farr & Gallagher and Simpson Thacher & Bartlett served as legal counsel to Franklin Templeton and BSP. Berkshire Global Advisors served as exclusive financial advisor to Encina Lender Finance, while Mayer Brown and Winston Taylor acted as its legal counsel.
KEY QUOTES:
“We continue to expand and diversify our private markets capabilities, using our balance sheet selectively to support strategic growth. This transaction demonstrates the strength of our model: combining specialized investment expertise with Franklin Templeton’s global scale and distribution to build differentiated investment solutions for clients. With over $300 billion in alternative AUM, we believe there is significant opportunity to continue scaling our private markets capabilities globally.”
Jenny Johnson, CEO Of Franklin Templeton
“Investor demand for ABF continues to grow among a mix of institutional allocators. Adding the Encina team is a natural extension of our existing strategies and broadens both our origination capabilities and the range of financing solutions we can provide. Together with Franklin Templeton, we continue to build a scaled private ABF platform, which we believe has significant capacity for growth across asset classes and geographies.”
David Manlowe, CEO Of Benefit Street Partners
