Franklin Templeton is folding its European private credit business Alcentra into its US platform Benefit Street Partners, consolidating its private credit operations under a single global brand, according to a report by Bloomberg. The combined business will operate as Benefit Street Partners and oversee around $86bn in assets.
Benefit Street Partners co-Chief Operating Officer Allison Davi said the integration is intended to simplify the firm’s offering and provide greater scale across regions. Investors increasingly favour large, diversified managers offering multiple strategies through one platform, leading to broader consolidation across the market.
Franklin Templeton has expanded its alternative credit capabilities in recent years, including through the acquisition of European lower mid-market lender Apera, which will now provide direct lending coverage in Europe, alongside Benefit Street Partners in the US. The group is also exploring further acquisitions in areas such as infrastructure credit and asset-based lending.
Alcentra, once a leading European direct lender, will wind down its direct lending franchise and focus on managing existing assets. Its structured credit and special situations strategies will continue under the Benefit Street Partners platform.
