Benefit Street Partners (BSP) has closed its third captive US collateralised loan obligation (CLO) equity fund, after securing $500m (£369m) in total equity commitments.
BSP CLO Equity III provides the alternative asset management firm, which is a subsidiary of Franklin Templeton, with the capacity to fund up to 20 US CLOs over the next four years, and to add as much as $10bn in assets under management to BSP’s credit platform.
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“The consistent performance of US 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 at BSP.
“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.”
In January 2024, BSP closed its fifth flagship direct lending vehicle, BSP Debt Fund V, having raised $4.7bn.
The fund invests primarily in privately originated, floating rate, senior secured loans.
BSP offers investment solutions across a range of credit strategies, including direct lending, special situations, structured credit, high-yield bonds, leveraged loans and commercial real estate debt.
When combined with its European counterpart Alcentra, BSP has more than $26bn in CLO assets under management, making it one of the largest global CLO managers.
Earlier this year, Alcentra secured more than $1bn in equity capital commitments for its CLO-focused strategies, with a portion of the capital set to form part of Alcentra’s second captive European CLO equity fund.
