Benefit Street Partners Closes $10B Debt Fund
The investment vehicle will focus on middle-market assets.
Benefit Street Partners has closed its BSP Real Estate Opportunistic Debt Fund II, amassing $10 billion in investable capital, including related vehicles and anticipated leverage. The fund secured $3 billion in equity commitments, marking the largest such fundraise in the firm’s history.
ODF II will focus on originating both junior and senior commercial real estate loans in major U.S. markets, with a focus on multifamily and middle-market assets.
The strategy targets transitional, distressed and other complex properties, aligning with current multifamily market predictions that point to sustained demand for alternative financing structures
The new vehicle will also prioritize markets in low- or no-tax states such as Florida, Texas and Tennessee, according to The Wall Street Journal. BSP’s previous opportunistic debt fund raised about $1.5 billion in 2022, including leverage.
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Since 2013, BSP’s real estate debt platform—part of Franklin Templeton—has originated more than $30 billion in investments. BSP, alongside alternative credit affiliates Alcentra and Apera, managed $91 billion in assets under management worldwide as of November.
In September, Benefit Street Partners, in a partnership with Coller Capital, closed another fund, namely BSP Debt Fund IV CV, a private credit continuation vehicle. The fundraise collected $2.3 billion and represents the largest single-fund portfolio of its kind in the private credit secondaries market.
BSP’s recent residential originations
Last year, Benefit Street Partners originated nearly $9 billion of real estate investments. In April, the company originated a $154.5 million loan for the construction of The Belvedere, a luxury condominium project in downtown Houston. Pearlstone Partners works on the 158-unit community scheduled to come online in 2027.
A few months later, the firm provided a $58.5 million, five-year senior loan for the refinancing of a 404-unit Houston community. Vero Capital owns the luxury property dubbed Us Bayou Park.
