Franklin Templeton and Benefit Street Partners Expand Asset-Backed Finance Capabilities with Encina Lender Finance Transaction

Adds 14-person investment team and a seed portfolio with approximately $480 million of commitments originated by Encina

NEW YORK--(BUSINESS WIRE)--Franklin Templeton, Inc. (NYSE: BEN) and Benefit Street Partners, L.L.C. (BSP), the group’s alternative credit manager, have completed a transaction with Encina Lender Finance (Encina) that expands BSP’s asset-backed finance (ABF) platform. As of September 30, 2026, Franklin Templeton managed $1.8 trillion in assets, including over $300 billion in alternative assets, of which approximately $97 billion is managed by BSP.

Under the terms of the transaction, a new fund backed by Franklin Templeton and BSP-affiliated funds acquired an initial seed portfolio with approximately $480 million of commitments originated by Encina. In addition, a 14-person investment team from Encina joined BSP and will continue to manage and originate investments through the strategy.

The transaction expands BSP’s capabilities in consumer and commercial lender finance and continues the buildout of a comprehensive, multi-strategy private asset-backed finance platform focused on the middle market. The platform now spans corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance and lender finance.

With the completion of the transaction, the now combined ABF platform provides BSP with access to approximately 100 investment professionals and a track record dating to 2013. Having completed over $10 billion of investments since inception, BSP now believes the combined ABF platform has the capacity to originate more than $3 billion annually.

Jenny Johnson, CEO of Franklin Templeton, said: “We continue to expand and diversify our private markets capabilities, using our balance sheet selectively to support strategic growth. This transaction demonstrates the strength of our model: combining specialized investment expertise with Franklin Templeton’s global scale and distribution to build differentiated investment solutions for clients. With over $300 billion in alternative AUM, we believe there is significant opportunity to continue scaling our private markets capabilities globally.”

The Encina team focuses on providing senior secured, unitranche and first-out financing to consumer and commercial asset originators across the US and Canada. Its investments are supported by diversified pools of underlying assets, including consumer loans, credit card receivables and small business loans, supporting a data-driven approach to underwriting and portfolio management.

ABF is one of the largest and fastest-growing areas of the approximately $6 trillion global private credit market and accounted for around 20% of private credit fundraising in 2025, according to industry data.

David Manlowe, CEO of BSP, added: “Investor demand for ABF continues to grow among a mix of institutional allocators. Adding the Encina team is a natural extension of our existing strategies and broadens both our origination capabilities and the range of financing solutions we can provide. Together with Franklin Templeton, we continue to build a scaled private ABF platform, which we believe has significant capacity for growth across asset classes and geographies.”

Willkie Farr & Gallagher LLP and Simpson Thacher & Bartlett LLP served as legal counsel to Franklin Templeton and BSP. Berkshire Global Advisors served as exclusive financial advisor to Encina Lender Finance, and Mayer Brown LLP and Winston Taylor LLP served as its legal counsel.

About Franklin Templeton

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity. With over $1.79 trillion in assets under management as of September 30, 2026, Franklin Templeton operates globally in more than 30 countries.

To learn more, visit franklintempleton.com and follow us on LinkedIn.

Franklin Templeton, Inc. [NYSE: BEN]

About Benefit Street Partners

Benefit Street Partners (BSP) is an alternative credit pioneer with $97 billion in assets under management as of August 31, 2026 (including Apera). It seeks to deliver attractive, risk-adjusted returns through its deep specialism, long-term relationships and global reach. A wholly owned subsidiary of Franklin Templeton, BSP is focused on credit. Through its disciplined, solutions-oriented approach, BSP unlocks opportunities across market cycles and geographies. The firm manages strategies spanning direct lending, real estate debt, structured credit, liquid loans and asset backed finance.

For more information, visit bspcredit.com and follow us on LinkedIn.

Forward-Looking Statements

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Various forward-looking statements in this press release relate to Franklin Templeton and BSP’s transaction with Encina, including regarding expected opportunities, operating results, growth, client and stockholder benefits and key assumptions.

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These risks and other important factors are described in Franklin Templeton’s recent filings with the U.S. Securities and Exchange Commission, including Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in its Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and subsequent Quarterly Reports on Form 10-Q. Franklin Templeton undertakes no obligation to update any forward-looking statements to reflect new information, future developments or other changes unless required by law.