About This Fund
Benefit Street Partners Second Special Situations Fund (BSP Special Situations Fund II) is a closed-end special situations credit fund managed by Benefit Street Partners (BSP), a wholly-owned credit subsidiary of Franklin Templeton. The fund closed in May 2024 with approximately $850 million in aggregate committed capital, oversubscribing its undisclosed original target, with 40 percent of capital already deployed at the time of announcement. The limited partner base comprises institutional investors across sovereign wealth funds, public pension plans, corporate pension plans, insurance companies, and family offices.
BSP Special Situations Fund II provides bespoke financing solutions to borrowers that cannot access traditional capital markets, investing across the full spectrum of stressed and distressed credit situations in the United States and Europe. The fund targets over-leveraged businesses and complex capital structure opportunities across both private and publicly traded credit instruments. The predecessor vehicle, BSP Special Situations Fund I, closed in December 2017 at its hard cap of $750 million against an original target of $500 million, and the combined platform has deployed more than $3 billion since inception, generating an inception-to-date net IRR of 25 percent on early investments as of the May 2024 close. The strategy leverages BSP's credit research capabilities and restructuring advisory network to identify opportunities across the credit cycle.
Benefit Street Partners manages BSP Special Situations Fund II as part of a broader credit platform that oversees more than $76 billion in combined assets under management following BSP's 2023 combination with Alcentra, another Franklin Templeton credit subsidiary. Franklin Templeton's acquisition of Benefit Street Partners in 2019 provided BSP with expanded distribution and operational resources globally. The fund's investment team sources transactions through BSP's relationships with restructuring advisers, investment banks, and corporate borrowers seeking non-traditional financing across the U.S. and European special situations markets.