Franklin Templeton (NYSE: BEN) and its alternative credit subsidiary Benefit Street Partners (BSP) have completed a transaction with Encina Lender Finance that adds a 14-person investment team and a seed portfolio with approximately $480 million in commitments to BSP's asset-backed finance (ABF) platform.

Under the terms of the deal, a new fund backed by Franklin Templeton and BSP-affiliated funds acquired the initial seed portfolio originated by Encina. The Encina investment team joined BSP and will continue to manage and originate investments through the strategy.

The transaction expands BSP's consumer and commercial lender finance capabilities. The combined ABF platform now spans corporate asset-backed lending, equipment leasing, aircraft leasing, consumer finance, and lender finance, with approximately 100 investment professionals and a track record dating to 2013.

BSP states the combined platform has completed over $10 billion of investments since inception and has the capacity to originate more than $3 billion annually.

As of September 30, 2026, Franklin Templeton managed $1.8 trillion in assets, including over $300 billion in alternative assets, approximately $97 billion of which is managed by BSP.

Jenny Johnson, CEO of Franklin Templeton, said: "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."

David Manlowe, CEO of BSP, said: "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."

The Encina team focuses on senior secured, unitranche, and first-out financing to consumer and commercial asset originators across the US and Canada, with investments backed by consumer loans, credit card receivables, and small business loans.

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