Benefit Street Partners expands ABF platform via Encina deal

Benefit Street Partners (BSP), the global alternative credit arm of Franklin Templeton, has expanded its asset-backed finance (ABF) platform through a transaction with private credit firm Encina Lender Finance. A new fund supported by Franklin Templeton and BSP-affiliated funds has acquired an initial seed portfolio consisting of approximately $480 million in commitments originated by Encina.

As part of the deal, a 14-member investment team from Encina has joined BSP to continue managing and originating investments. The Encina team specializes in senior secured, unitranche, and first-out financing for consumer and commercial asset originators throughout the United States and Canada. These investments are backed by diversified asset pools, including small business loans, credit card receivables, and consumer loans.

The transaction enhances BSP’s multi-strategy private ABF platform, which covers corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance, and lender finance. Following the integration, BSP expects the combined platform to have the capacity to originate more than $3 billion in investments annually.