Franklin Templeton, BSP add $480M in Encina commitments
BSP chief cites growing demand for asset-backed finance
Investment manager Franklin Templeton and its alternative credit subsidiary Benefit Street Partners have expanded their asset-backed finance platform, which includes equipment and aircraft leasing, through a transaction with Encina Lender Finance involving approximately $480 million in financing commitments.
A fund, backed by Franklin Templeton and Benefit Street Partners (BSP)-affiliated funds, acquired the Encina-originated commitments, according to today’s Franklin Templeton release. The transaction also brings 14 Encina investment professionals to BSP, where they will continue originating and managing lender finance investments. The purchase price was not disclosed.
The incoming team provides senior secured, unitranche and first-out financing to consumer and commercial asset originators across the United States and Canada. The companies support the investments with asset pools including consumer loans, credit card receivables and small-business loans.
The transaction expands BSP’s lender finance capabilities alongside its existing equipment leasing and aircraft leasing businesses. BSP Chief Executive David Manlowe said the deal strengthens the firm’s origination capabilities amid growing institutional demand for asset-backed finance.
BSP has completed more than $10 billion in investments since inception and estimates the combined platform can originate more than $3 billion annually, according to the release. The platform provides access to about 100 investment professionals.
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