Key Takeaways
- • Benefit Street Partners (BSP), Franklin Templeton's alternative credit manager, added a 14-person investment team from Encina Lender Finance to expand its private asset-backed finance platform.
- • A new fund backed by Franklin Templeton and BSP-affiliated funds acquired a seed portfolio of approximately $480m of commitments originated by Encina.
- • The combined platform has access to roughly 100 investment professionals, a track record dating to 2013, more than $10bn of completed investments since inception, and an estimated origination capacity above $3bn annually.
- • The team will continue to manage and originate investments under the strategy, providing senior secured, unitranche and first-out financing across the US and Canada.
- • BSP CEO David Manlowe cited growing institutional investor demand for asset-backed finance as the rationale for the expansion.
Summary
Benefit Street Partners (BSP), Franklin Templeton's alternative credit manager, has added a 14-person investment team from Encina Lender Finance through a transaction that expands its private asset-backed finance platform, according to a statement from the firms. The team will continue to manage and originate investments under the strategy. Alongside the move, a new fund backed by Franklin Templeton and BSP-affiliated funds acquired a seed portfolio comprising approximately $480m of commitments originated by Encina.
The incoming team provides senior secured, unitranche and first-out financing to consumer and commercial asset originators across the US and Canada. Its investments are backed by pools of assets including consumer loans, credit card receivables and small business loans. The transaction broadens BSP's middle-market financing capabilities. Its asset-backed finance platform now spans corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance and lender finance.
Following the transaction, the combined platform has access to approximately 100 investment professionals and a track record dating back to 2013. It has completed more than $10bn of investments since inception, and BSP estimates it can originate more than $3bn annually.
BSP chief executive David Manlowe said the addition would expand the firm's origination capabilities and range of financing solutions as institutional investor demand for asset-backed finance grows. Franklin Templeton chief executive Jenny Johnson said the group was selectively deploying its balance sheet to support the expansion of its private markets business. Franklin Templeton managed $1.8tn in assets as at 30 September 2026, including more than $300bn in alternatives, while BSP managed approximately $97bn.
The incoming team provides senior secured, unitranche and first-out financing to consumer and commercial asset originators across the US and Canada. Its investments are backed by pools of assets including consumer loans, credit card receivables and small business loans. The transaction broadens BSP's middle-market financing capabilities. Its asset-backed finance platform now spans corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance and lender finance.
Following the transaction, the combined platform has access to approximately 100 investment professionals and a track record dating back to 2013. It has completed more than $10bn of investments since inception, and BSP estimates it can originate more than $3bn annually.
BSP chief executive David Manlowe said the addition would expand the firm's origination capabilities and range of financing solutions as institutional investor demand for asset-backed finance grows. Franklin Templeton chief executive Jenny Johnson said the group was selectively deploying its balance sheet to support the expansion of its private markets business. Franklin Templeton managed $1.8tn in assets as at 30 September 2026, including more than $300bn in alternatives, while BSP managed approximately $97bn.
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