Ropes & Gray Advises Benefit Street Partners on $500 Million CLO Equity Fund Close.
Ropes & Gray has advised Benefit Street Partners (BSP), a leading alternative credit investment manager, on the successful closing of its third captive U.S. CLO equity fund, BSP CLO Equity III, which secured $500 million in total equity commitments.
The fund's closing was announced on June 12 and is expected to significantly expand BSP’s structured credit capabilities.
This latest fund is a major boost to BSP’s already expansive credit platform. If fully deployed, it could bring in up to $10 billion in additional assets.
Together with its European affiliate, Alcentra, BSP now ranks among the largest CLO managers worldwide, with more than $26 billion tied to this strategy. The firm has been investing in CLO equity for over two decades, navigating multiple credit cycles while continuing to draw investor interest.
“The consistent performance of U.S. CLO equity across multiple credit cycles has earned it a permanent allocation within private credit portfolios,” said Vince Pompliano, Managing Director and Co-Head of BSP’s CLO business.
“Investor demand for this strategy reflects both the asset class’s growing appeal and continued confidence in BSP’s ability to deliver attractive, risk-adjusted returns through disciplined investing, deep credit expertise and the strength of our experienced team.”
The Ropes & Gray team advising BSP brought together talent from across the firm, including asset management partners Melissa Bender, Katie Waite, and Anna Lawry; tax specialists Adam Greenwood and Franziska Hertel; and finance partner Patricia Lynch.
Benefit Street Partners (BSP) is a credit-focused alternative asset manager with approximately $78 billion in assets under management. Founded in 2008, BSP offers strategies across private debt, CLOs, structured credit, high-yield bonds, and real estate. The firm serves institutional and high-net-worth investors globally and operates from offices in New York, Boston, West Palm Beach, and London. BSP is a wholly owned subsidiary of Franklin Templeton.
Ropes & Gray is a global law firm providing comprehensive legal services to clients across a wide range of industries. With a reputation for excellence, the firm is known for its expertise in areas such as corporate law, private equity, M&A, intellectual property, litigation, regulatory matters, and finance.
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