Benefit Street Partners Secures $500 Million for Its Third Captive U.S. CLO Equity Fund

Benefit Street Partners L.L.C. (“BSP”), a leading credit-focused alternative asset management firm and a subsidiary of Franklin Templeton, announced today 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 gives BSP the capacity 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.

“The consistent performance of U.S. CLO equity across multiple credit cycles has earned it a permanent allocation within private credit portfolios,” said Vince Pompliano, Managing Director and Co-Head of CLO Platform. “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.”

About Benefit Street Partners

BSP is a leading global alternative credit asset manager offering clients investment solutions across a broad range of complementary credit strategies, including direct lending, special situations, structured credit, high yield bonds, leveraged loans and commercial real estate debt. As of March 31, 2025, BSP and Alcentra combined have $77 billion of assets under management, with 501 employees operating across North America, Europe and Asia Pacific. BSP is a wholly owned subsidiary of Franklin Templeton. For further information, please visit www.benefitstreetpartners.com.

About Alternatives by Franklin Templeton

Franklin Templeton is one of the largest managers in alternative assets globally, amounting to 16% (US$252 billion) of the firm’s $1.5 trillion in assets under management as of March 31, 2025. Its specialist investment managers, each with deep domain expertise, provide a diverse range of alternative asset capabilities including private credit and real estate debt from Benefit Street Partners-Alcentra, real estate equity from Clarion Partners, secondary private equity and co-investments from Lexington Partners, hedged strategies from Franklin Templeton Investment Solutions and pre-IPO growth equity investments from Franklin Venture Partners.

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