Why Private Credit? | Franklin Templeton

Floating Rate Offers Natural Hedge Against Inflation in a Rising Rate Environment

Growth of Private Credit: The Move Away from Traditional Bank Lending

The move away from traditional bank lending has led to a significant funding gap for small and mid-sized businesses, resulting in a large and attractive opportunity set.

The appeal of a direct lending relationship for borrowers

Borrowers are attracted to the private debt arena by the speed, flexibility and predictability displayed by private lenders in comparison to banks
Private credit deals need greater customization of structures as well as longer maturity profiles to match borrowers financing needs

Related Pages

Franklin BSP Private Credit Fund

Learn more about this private credit solution for investors through an interval fund structure.

Learn About Benefit Street Partners

A leading credit-focused alternative asset manager with $41 billion in assets under management^3,4 and the flexibility to invest across the capital structure.

Source: Franklin Templeton, Bloomberg. As of June 30, 2022. S&P LSTA Leveraged Loan Index for Leveraged Loans, Cliffwater Direct Lending Index for Private Debt. Corporate Bond represented by Bloomberg Investment Grade Corporate TR USD. Investment Grade Bond represented by Bloomberg US Aggerate TR USD Index. Returns do not reflect any fees, expenses or sales charges. Indexes are unmanaged and investors cannot invest directly in an index. This information is provided for illustrative purposes only.
Source: LCD, Loans, US Research. Excludes left and right agent commitments (including administrative, syndication and documentation agent as well as arranger). Non-banks include institutional investors, insurance companies and finance companies.
AUM refers to the assets under management for all credit funds and separately managed accounts managed and administered by BSP. AUM amounts are approximations as of June 30, 2022 and are unaudited. Certain amounts are preliminary and remain subject to change.
Includes pro forma amounts for the merging of Benefit Street Partners Realty Trust (“BSPRT”) and Capstead Mortgage Corporate (“Capstead”) and anticipated deleveraging of the post-combination portfolio.

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The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested.

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