California-based Franklin Templeton Investments has agreed to acquire Benefit Street Partners, a credit-focussed alternative asset manager based in New York. Financial terms of the transaction were not disclosed.
The deal will add $26bn in assets to Franklin Templeton’s books, increasing its alternative assets to $40bn.
According to Franklin Templeton, the acquisition is in keeping with a time when investors are allocating more capital to higher yielding credit opportunities.
Franklin Templeton president and COO Jenny Johnson said: “Expanding our alternatives capabilities has been a strategic focus area for Franklin Templeton, and this acquisition will position us to capitalise on the growing and sought after alternative credit segment.
“We’re consistently seeing investors augment their traditional fixed income portfolios with alternative credit to enhance their risk/reward characteristics. BSP brings new alternative solutions within private credit that complement Franklin Templeton’s existing alternatives and fixed income capabilities to meet the evolving needs of our clients.”
The deal is anticipated to be wrapped up in the second quarter of 2019.
BSP founder, CEO and CIO Tom Gahan said: “We believe Franklin Templeton is the perfect long-term partner for our business. Franklin Templeton’s pedigree, global reach and extensive investment capabilities will provide BSP with increased resources and investment opportunities.”
Set up in 2008, BSP covers a range of investment capabilities such as corporate performing and distressed private credit, structured credit and commercial real estate credit.