Benefit Street Partners (BSP), Franklin Templeton’s alternative credit manager, has added a 14-person investment team from Encina Lender Finance through a transaction expanding its private asset-backed finance platform, according to Private Equity Wire. 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, according to the same report.
14-person team to continue managing and originating under the strategy
The Encina Lender Finance team will continue to manage and originate investments under the strategy following the transaction, according to Private Equity Wire. The incoming team provides senior secured, unitranche and first-out financing to consumer and commercial asset originators across the US and Canada.
Investments made by the strategy are backed by pools of assets including consumer loans, credit card receivables and small business loans. The transaction was described as expanding BSP’s private asset-backed finance platform in a statement from the firms.
Platform coverage spans multiple asset-backed finance segments
The transaction broadens BSP’s middle-market financing capabilities, with its asset-backed finance platform now covering corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance and lender finance, according to Private Equity Wire.
Following the transaction, the combined platform has access to approximately 100 investment professionals and a track record dating back to 2013. The combined platform has completed more than $10bn of investments since inception, and BSP estimates it can originate more than $3bn annually.
Executive comments and AUM figures disclosed
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. BSP managed approximately $97bn.
Widely known context: asset-backed finance is commonly structured around financing pools of receivables and other cash-flowing assets, including consumer loans and credit card receivables.
