Global asset manager Franklin Templeton said on the 27th that it will integrate its U.S.- and Europe-based alternative credit managers Benefit Street Partners (BSP) and Alcentra under a renewed BSP brand.
This brand integration is the final step in combining BSP, acquired by Franklin Templeton in 2019, and Alcentra, acquired in 2022. It reflects growing demand from institutional investors for an integrated platform spanning the alternative credit asset class.
Accordingly, a new logo and website domain were unveiled, and funds previously managed under the Alcentra brand will be transitioned in stages to the BSP name starting this week. Including recently acquired Apera Asset Management, Franklin Templeton's alternative credit platform assets under management (AUM) are expected to exceed $100 billion (about 145 trillion won) this year.
David Manlowe, BSP chief executive officer (CEO), said, "This brand integration will serve as a catalyst to further advance the integrated global platform strategy we have built over the past several years."
Since entering the Korean market in 1997, Franklin Templeton has maintained offices in Seoul and Jeonju, offering a range of investment solutions spanning traditional assets and alternative investments. BSP collaborates with major institutional investors in Korea, including pension funds, mutual aid associations, and insurers, and supports the Korean market through a dedicated team within Franklin Templeton's Seoul office.
Korean institutional investors are also moving in step with the global trend, expanding their allocation to alternative credit to secure income sources that are stable and relatively less sensitive to economic cycles than traditional bonds. In particular, interest is growing in a range of strategies, including direct lending, structured credit such as collateralized loan obligations (CLOs), and U.S. real estate debt.
According to a global institutional investor survey BSP released the same day, 93% of 135 global institutional investors with a combined £8 trillion (about $10 trillion) in assets under management plan to maintain (42%) or increase (51%) their allocation to alternative credit by 2026. The main reasons cited for increasing investment were portfolio diversification benefits (85%) and higher return potential compared with traditional bonds (81%).
Kim Jeong-min, BSP head of sales for Asia-Pacific (APAC), said, "Through this brand integration, we will bring together the expertise across global alternative credit and the strengths of our integrated platform under one brand, supporting Korean institutional investors' long-term investment goals more consistently and effectively."