BNY Mellon Investment Management
A definitive agreement has been reached with Franklin Templeton and its U.S. alternative credit manager Benefit Street Partners (BSP) to acquire our private credit specialist, Alcentra.
Following a strategic business review which started last fall, the decision was made to sell Alcentra to provide the firm with the resources and expertise to expand its investment capabilities. Under BNY Mellon ownership for the past 16 years, Alcentra’s AUM has doubled in size to US$38bn (as of April 30, 2022) and it has become a leading European alternative credit provider. Franklin Templeton’s alternatives offering in the U.S. with Benefit Street Partners and its intention to build a global alternatives platform, will help with the next phase of Alcentra’s growth. We believe it is well positioned to support the ongoing development of new innovative investment capabilities for Alcentra’s clients.
We anticipate the sale will be completed by early next year, subject to regulatory approvals. In the meantime, it will be business as usual. As part of the agreement with Franklin Templeton there will be a transition period following completion of the transaction to ensure a seamless handover of the business.
Post close of sale, BNY Mellon Investment Management expects to continue to partner with Alcentra and Franklin Templeton on a number of BNY Mellon distributed funds offered today via an ongoing sub-advisory relationship, subject to relevant approvals and ongoing regulatory requirements. BNY Mellon Investment Management will continue, for a transitional period, to act as the alternative investment fund manager (AIFM) for Alcentra-advised funds in Luxembourg and the UK. Also, for a transitional period, BNY Mellon Investment Management will continue to offer certain ancillary support services in select regions.
For all other Alcentra funds and strategies offered, managed or distributed by BNY Mellon Investment Management, investors will be notified as appropriate to support any changes to existing arrangements.
Alternative investment capabilities are an important part of our business. We will continue to grow our alternative solutions, which includes a broad range of alternative capabilities for clients, such as alternative fixed income, private equity, real estate and liquid alt strategies.