New York-based Benefit Street Partners closed its fifth flagship fund with $4.7 billion of investable capital, tapping into continued institutional investor interest in U.S. direct lending.
BSP Debt Fund V, in line with previous vintages, will invest primarily in privately originated, floating rate, and senior secured loans. These loans will be made to private equity sponsored and non-sponsored middle market companies in North America.
“The close of BSP Debt Fund V reflects the strong demand for this asset class from both existing and new limited partners around the globe,” said David Manlowe, CEO of the $75 billion Benefit Street Partners. “The market opportunity and backdrop for U.S. direct lending is tremendous. We are grateful for the confidence our investors have shown in our team to deploy this portfolio. We look forward to providing companies with bespoke financing solutions in this latest vintage fund, while helping our investors seek to achieve their target returns.”
Benefit Street Partners, which is now a wholly owned subsidiary of Franklin Templeton, since its 2008 inception has deployed roughly $38 billion in its private debt platform.
The expectation for continued broad interest in the asset class is expected to continue as allocators seek out attractive risk-adjusted returns, commented Blair Faulstich, head of U.S. Private Debt at the firm.
“Many of the dynamics we observe in today’s market should drive robust deal flow over the near to medium term,” he added. “Our significant underwriting experience, loan structuring expertise, and focus on deep due diligence provides us with a significant competitive advantage as we capitalize on the favorable environment for new credit investments.”