Ropes & Gray, a globally recognized law firm, has successfully advised Benefit Street Partners (BSP), an expert in alternative credit investment, on the closure of its third U.S. CLO equity fund, BSP CLO Equity III. This fund has impressively secured $500 million in total equity commitments, marking a significant milestone in BSP’s investment journey.

Announced on June 12, this closure is poised to substantially enhance BSP’s structured credit capabilities. With this new fund, BSP could potentially manage up to an additional $10 billion in assets, further solidifying its position as a powerhouse in credit management.

BSP, together with its European partner Alcentra, now stands among the top CLO managers globally with over $26 billion dedicated to this strategy. Having invested in CLO equity for over two decades, BSP has skillfully navigated through various credit cycles, continually attracting investor interest thanks to its robust performance track record.

Vince Pompliano, Managing Director and Co-Head of BSP’s CLO business, highlighted the enduring appeal of U.S. CLO equity. “The consistent performance of U.S. CLO equity across multiple credit cycles has earned it a permanent allocation within private credit portfolios,” he stated. He further emphasized the strong investor confidence in BSP’s ability to deliver attractive, risk-adjusted returns through disciplined investing and profound credit expertise.

The advising team from Ropes & Gray was composed of top-tier talent including asset management partners Melissa Bender, Katie Waite, and Anna Lawry; tax specialists Adam Greenwood and Franziska Hertel; along with finance partner Patricia Lynch. This diverse team brought together a wealth of knowledge and experience, ensuring a smooth transaction process for BSP.

Benefit Street Partners, a subsidiary of Franklin Templeton, manages approximately $78 billion in assets and offers a wide range of strategies across private debt, CLOs, structured credit, high-yield bonds, and real estate. The firm operates globally with offices in key cities including New York, Boston, West Palm Beach, and London.

Ropes & Gray continues to provide comprehensive legal services across various sectors, reinforcing its reputation for excellence in corporate law, private equity, M&A, intellectual property, litigation, regulatory matters, and finance.

This strategic move by BSP, supported by Ropes & Gray’s expert legal guidance, not only underscores the growing attractiveness of CLO investments but also reinforces BSP’s stronghold in the alternative credit sector.