Franklin Templeton Integrates Alternative Credit Businesses Under BSP Brand

Acquisition of BSP in 2019 and Alcentra in 2022
“Reflecting Demand for an Integrated Alternative Credit Platform”

Global asset management firm Franklin Templeton has announced the integration of its alternative credit subsidiaries based in the United States and Europe, Benefit Street Partners (BSP) and Alcentra, under the renewed BSP brand.

According to Franklin Templeton on January 27, this brand integration marks the final phase of merging BSP, acquired in 2019, and Alcentra, acquired in 2022. The move reflects growing demand from institutional investors for a unified platform spanning the entire alternative credit asset class, leveraging the combined expertise and global capabilities of both firms.

New logo of Benefit Street Partners (BSP).

As part of this integration, a new logo and website domain have been released, and funds previously managed under the Alcentra brand will be gradually transitioned to the BSP name starting this week. With the recent acquisition of Apera Asset Management, Franklin Templeton’s alternative credit platform assets under management (AUM) are expected to surpass 100 billion dollars this year.

Since entering the Korean market in 1997, Franklin Templeton has operated offices in Seoul and Jeonju, offering a wide range of investment solutions encompassing both traditional and alternative assets. BSP collaborates with major Korean institutional investors, such as pension funds, mutual aid associations, and insurance companies, and supports the Korean market through a dedicated team within Franklin Templeton’s Seoul office.

Meanwhile, Korean institutional investors are also increasing their allocation to alternative credit investments, moving beyond traditional bonds in line with global trends. This is aimed at securing stable sources of return that are relatively less sensitive to economic fluctuations. There is particularly growing interest in strategies such as direct lending, structured credit including CLOs, special situations, and U.S. real estate debt. BSP supports Korean institutional investors in advancing their alternative credit portfolios and implementing global diversification strategies, leveraging its global investment expertise and capabilities.

According to a global institutional investor survey released by BSP on the same day, 93% of 135 global institutional investors, collectively managing 8 trillion pounds (approximately 10 trillion dollars) in assets, plan to either maintain (42%) or increase (51%) their allocation to alternative credit this year. The main reasons cited for expanding investments were portfolio diversification benefits (85%) and higher return potential compared to traditional bonds (81%). Notably, 81% of respondents stated that “specialized management capabilities for specific asset classes are the key driver of performance.”

Over the next 12 months, the area with the highest expected increase in investment is infrastructure debt (47%), followed by direct lending (39%), asset-backed lending (35%), special situations and distressed debt (30%), commercial real estate debt (28%), and CLOs (16%).

In response to these shifts in investor demand, BSP plans to pursue a growth strategy that combines organic expansion and strategic mergers and acquisitions over the next five years. The company will selectively consider attractive acquisition opportunities that complement its existing business capabilities, while also expanding into adjacent areas of the alternative credit asset class, including further market expansion in Asia and entry into the Middle East.

David Manlowe, Chief Executive Officer (CEO) of BSP, stated, “BSP and Alcentra have each grown as leading alternative credit managers in the United States and Europe, respectively, and have built a strong track record of successfully supporting investors across multiple market cycles based on their complementary strengths. This brand integration will further advance the unified global platform strategy we have been building in recent years.”

He added, “Through the integrated platform that shares global research, sales, and operational infrastructure, we have established a system that can more effectively respond to clients’ evolving alternative credit investment needs.”

Kim Jeongmin, Head of Sales for Asia-Pacific (APAC) at BSP, commented, “As the alternative credit market grows, investors are placing greater emphasis on expertise and global platform capabilities across the entire asset class, rather than on individual products. Through this brand integration, we are consolidating our expertise and the strengths of our integrated platform across global alternative credit under a single brand, enabling us to support the long-term investment goals of Korean institutional investors more consistently and effectively.”