Alcentra Finds a Home at Franklin Templeton
Posted on 05/31/2022
The Bank of New York Mellon Corporation (BNY Mellon) sold BNY Alcentra Group Holdings, Inc. to Franklin Resources, Inc. (NYSE:BEN), a global investment management organization operating as Franklin Templeton. Alcentra has been on the chopping block at BNY Mellon for quite some time. Alcentra has US$ 38 billion in assets under management with expertise in senior secured loans, high yield bonds, private credit, structured credit, special situations, and multi-strategy credit strategies. Alcentra was formed in 2002. In recent times, Alcentra lost many key people in its direct lending unit.
Through this acquisition, Franklin Templeton’s U.S. alternative credit specialist investment manager, Benefit Street Partners, will expand its alternative credit capabilities and presence in Europe, doubling its assets under management to US$ 77 billion globally. Upon closing, BNY Mellon Investment Management will continue to offer Alcentra’s capabilities in BNY Mellon’s sub-advised funds and in select regions via its global distribution platform, and BNY Mellon will provide Alcentra with ongoing asset servicing support. At close, BNY Mellon expects the transaction to increase BNY Mellon’s Common Equity Tier 1 capital by approximately US$ 0.5 billion.
KKR and Prudential Financial considered buying Alcentra.
Advisors
Morgan Stanley & Co. LLC and UBS Investment Bank served as financial advisors to Franklin Templeton and Willkie Farr & Gallagher LLP served as legal counsel. Ardea Partners served as financial advisor to BNY Mellon and Sullivan & Cromwell LLP served as legal counsel.
