About This Fund
Benefit Street Partners Special Situations Fund II is the second dedicated special situations credit vehicle of Benefit Street Partners (BSP), a leading alternative credit manager and wholly-owned subsidiary of Franklin Templeton. The fund completed its final close on May 8, 2024, at approximately $850 million in capital commitments—exceeding its original target and closing as an oversubscribed vehicle. The raise represents a significant milestone for BSP's special situations platform, which has collectively deployed over $3 billion across both Fund I and Fund II since the strategy's inception.
Fund II targets borrowers and companies unable to access traditional credit markets due to financial stress, operational complexity, or capital structure over-leverage. The fund provides bespoke solutions including non-traditional senior secured loans, mezzanine capital, hybrid instruments, and restructuring-oriented credit to businesses in transition, drawing on BSP's deep institutional expertise in stressed and distressed situations across credit cycles. The special situations strategy complements BSP's broader credit platform—spanning investment-grade credit, leveraged finance, structured credit, direct lending, real estate debt, and GP stake financing—by targeting the highest-complexity segment of the credit spectrum where proprietary deal flow, structuring expertise, and execution speed create durable performance advantages.
As of the fund's final close announcement, BSP Special Situations Fund II had already deployed approximately 40% of committed capital, with early investments generating a strong inception-to-date net internal rate of return of 25%. This rapid early deployment and robust early IRR validate BSP's special situations pipeline and reflect the firm's ability to source non-sponsored, proprietary deal flow in dislocated credit markets. Benefit Street Partners manages assets on behalf of a global institutional investor base as a core constituent of Franklin Templeton's diversified alternatives platform.