Franklin Templeton has aligned its US and European alternative credit businesses, Benefit Street Partners ( BSP ) and Alcentra, under a single, updated brand.

The move is the final step in the integration of BSP and Alcentra – two alternative credit firms that Franklin Templeton acquired in 2019 and 2022, respectively – and reflects increasing investor demand for a specialist global credit platform with expertise across the full spectrum of the asset class, the investment manager says.

A refreshed logo and new website domain accompany the brand alignment, and Alcentra-branded funds start to take on the BSP name. Overall, Franklin Templeton’s alternative credit platform, which also includes direct lender Apera, is on track to exceed US$100 billion in assets under management ( AUM ) in 2026.

According to new research published on Tuesday ( January 27 ) by BSP, based on a survey of 135 global institutional investors with a combined AUM of £8 trillion ( US$10.95 trillion ), around 93% of respondents intend to either maintain ( 42% ) or increase ( 51% ) their exposure to alternative credit this year. The main motivation is the pursuit of greater diversification ( 85% ) and the potential for higher total returns in alternatives than traditional fixed income ( 81% ). As investors grow and diversify their alternative credit allocations, 81% consider a specialist asset class focus as the key to delivering strong performance.

Over the next 12 months, 47% of respondents intend to increase their exposure to infrastructure debt, making it the most popular strategy, followed by direct lending ( 39% ), asset-based lending ( 35% ), special situations and distressed debt ( 30% ), commercial real estate debt ( 28% ), and collateralized loan obligations ( CLOs ) ( 16% ).

New markets

To meet this strong and varied demand, BSP is targeting a mix of organic and inorganic growth over the next five years, with the possibility for further acquisitions where compelling opportunities complement its existing offering, the company says. This includes expansion into new markets in Asia and the Middle East, and into adjacencies within the full alternative credit landscape.

BSP chief executive officer David Manlowe comments: “BSP and Alcentra are complementary pioneers in alternative credit with long track records of successfully supporting investors through multiple market cycles. So, this alignment under a unified brand is a natural next step for our combined global platform, which has become increasingly integrated in recent years and already shares world-class research, distribution, as well as operational teams and infrastructure.

“Critically, this move ensures we are optimally positioned to meet our clients’ evolving alternative credit needs, including exposure to new asset classes and geographies around the world, leveraging our global platform and institutional capabilities to support the full scope of our investors’ ambitions.” 

Franklin Templeton says that while the company is integrating its expanding alternative credit platform, it remains committed to offering clearly differentiated investment capabilities to its investors within that global platform, particularly in certain local markets and where there is a specific area of focus. In October 2025, it acquired Apera Asset Management, which is focused on lower-middle-market direct lending across Europe.

With Apera now forming part of BSP, the combined business is today responsible for US$78 billion AUM in corporate credit strategies and US$14 billion in commercial real estate debt strategies.