The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Franklin Buys an Alt Credit Specialist For $683MM Up Front Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, October 26, 2018

Franklin Buys an Alt Credit Specialist For $683MM Up Front

Reported by Neil Anderson, Managing Editor

Greg Johnson and Co are doing another deal, this time more than doubling their alternatives AUM.

Yesterday Johnson, chairman and CEO of Franklin Templeton [profile] parent Franklin Resources, confirmed that the San Mateo, California-based asset manager has agreed to acquire New York City-based Benefit Street Partners. Ten-year-old BSP has about $26 billion in AUM, specializes in alternative credit, and is backed by Providence Equity Partners.

Franklin will pay $683 million in cash up front (including $130 million to retire BSP debt), which translates into 2.6 percent of BSP's AUM, and there will also be an earnout of unspecified size "over the next several years", according to the slides from Franklin's fiscal Q4 2018 earnings call yesterday. BSP CEO and chief investment officer Tom Gahan and president Rich Byrne joined Johnson and Franklin chief financial officer Ken Lewis on the call. (See Seeking Alpha's transcription.) Buying BSP is expected to more than double Franklin's alternative AUM to more than $40 billion.

The deal is expected to close in Franklin's fiscal Q2 2019, which ends on March 31 of next year. Morgan Stanley advised Franklin on the deal, while BofA Merrill Lynch advised BSP. Willkie Farr & Gallagher provided legal counsel to Franklin, while Skadden, Arps, Slate, Meagher & Flom did so for BSP.

Johnson praises the BSP team as "seasoned and talented," and he lauds their "differentiated approach to investing within the alternative credit space." Jenny Johnson, president and chief operating officer of Franklin, adds that alternative credit expansion "has been a strategic focus area for Franklin Templeton."

Gahan, BSP's founder, describes Franklin as "the perfect long-term partner" for his team.

"Franklin Templeton's pedigree, global reach and extensive investment capabilities will provide BSP with increased resources and investment opportunities," Gahan states.

On the earnings call, Gahan said that his team looks "forward to working with Franklin's global distribution platform to offer new products." Later, in response to a question from Evercore ISI analyst Glenn Schorr, Gahan noted that BSP doesn't offer any listed BDCs or mortgage REITs.

"To the extent we can tap into the massive retail distribution here at Franklin, those are big growth areas as well," Gahan said. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2023: Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. MFDF webinar - Latest Updates In Mutual Fund Litigation and Enforcement, June 6
  2. Pershing Insite 2023, Jun 6-8
  3. Nicsa webinar - The Journey From Networking to Sponsorship, June 7
  4. MFDF webinar - SEC Staff Panel, Division of Examinations — IC Issues and Considerations For Fund Boards, June 8
  5. Expect Miracles East Coast Classic, June 8
  6. 2023 MMI Alternative Investments Forum, June 13
  7. WE DC - ESG Panel Discussion, June 13
  8. Nicsa Fearless Leadership Symposium, June 14
  9. MFDF Director Discussion Series - Open Forum (Denver), June 20
  10. The Ben Graham 10th Annual Conference, Jun 20-21
  11. IDC Industry Segment Call - Governance Committee Chairs, June 21
  12. Crane Data's Money Fund Symposium, Jun 21-23
  13. IDC Industry Segment Call - Board Leaders, June 22
  14. 2023 MMI Distribution Leadership Forum, Jun 22-23
  15. MFDF webinar - Closed-End Fund Litigation Overview and Update, June 27
  16. MFDF Director Discussion Series - Open Forum (Atlanta, GA), June 28
  17. MFDF Director Discussion Series - Open Forum (Kansas City), June 30
  18. MFDF Director Discussion Series - Open Forum (New York), July 18
  19. 2023 MMI Leadership Pathway Seminar, Jul 19-20
  20. MFDF webinar - Generative AI — It's Here, July 20
  21. MFDF Director Discussion Series - Open Forum via Zoom, July 27
  22. MFDF Director Discussion Series - Open Forum (Milwaukee, WI), August 8
  23. MFDF Improving Equity Fund Alpha Estimates, September 13
  24. 4th Annual ETFGI Global ETFs Insights Summit - United States, Sep 20-21
  25. MFDF webinar - Introduction to Retail Private Markets Funds: Structures to Access Private Equity, Private Credit, Infrastructure and Real Estate Investments, September 27
  26. Expect Miracles Atlanta Coast Classic, October 2

©All rights reserved to InvestmentWires, Inc. 1997-2023
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use